Auto financing in Pakistan rises to Rs249bn in February

March 17, 2025 (MLN): Automobile financing in Pakistan has increased to Rs248.82bn in February 2025, witnessing a rise of 3% MoM compared to Rs241.6bn recorded in January 2025, according to the latest data released by the central bank.

On a year on year basis, car financing increased by 2.42%, as in the same period last year, the figure for financing was reported at Rs242.95bn.

This decline is mainly attributed to higher interest rates, an increase in car prices, regulative curbs for acquiring loans, and higher taxes on the import of automobiles and their parts.

Going by the data provided by the State Bank of Pakistan (SBP), consumer financing for house building stood at Rs199.59bn by the end of February 2025, down by 3.65% YoY.

Month-wise, the financing for house building has decreased by 0.22% compared to Rs200.02bn incurred in the previous month.

Meanwhile, financing for personal use clocked in at Rs264.75bn, up by 9.34% YoY and 4.66% MoM.

Thereby, the overall credit disbursed to consumers registered a rise of 6.77% YoY to clock in at Rs865.65bn. Compared to the credit of Rs844.37bn in the previous month, consumer financing has recorded a 2.52% MoM rise.

The data released by the central bank further showed that outstanding credit to the private sector rose 10.51% YoY to Rs9.3tr in February 2025.

On a sequential basis, private sector loans reported a drop of 3.91% MoM compared to the credit of Rs9.68tr in January.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs5.35tr in the review period, up by 10.2% YoY while down 5.67% MoM.

The borrowing from the construction sector stood at Rs210.58bn in February, up by 6.04% YoY while down 0.92% MoM.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs436.07bn in the month under review, up by 8.98% YoY, and on a sequential basis, the loans to the same sector recorded a fall of 1.2% MoM.

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