Auto financing in Pakistan rises to Rs257bn in March

April 16, 2025 (MLN): Automobile financing in Pakistan has increased to Rs257.36bn in March 2025, witnessing a rise of 3.43% MoM compared to Rs248.82bn recorded in February 2025, according to the latest data released by the central bank.

On a year on year basis, car financing increased by 7.49%, as in the same period last year, the figure for financing was reported at Rs239.44bn.

This decline is mainly attributed to higher interest rates, an increase in car prices, regulatory 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 Rs199.43bn by the end of March 2025, down by 3.08% YoY.

Month-wise, the financing for house building has decreased by 0.11% compared to Rs199.65bn incurred in the previous month.

Meanwhile, financing for personal use clocked in at Rs267.67bn, up by 10.59% YoY and 0.48% MoM.

Thereby, the overall credit disbursed to consumers registered a rise of 8.25% YoY to clock in at Rs873.75bn. Compared to the credit of Rs867.35bn in the previous month, consumer financing has recorded a 0.74% MoM rise.

The data released by the central bank further showed that outstanding credit to the private sector rose 12.34% YoY to Rs9.44tr in March 2025.

On a sequential basis, private sector loans reported a rise of 1.49% MoM compared to the credit of Rs9.3tr in February.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs5.41tr in the review period, up by 11.92% YoY and 1.17% MoM.

The borrowing from the construction sector stood at Rs212.76bn in March, up by 9.43% YoY and 1.04% MoM.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs445.05bn in the month under review, up by 13.49% YoY, and on a sequential basis, the loans to the same sector recorded growth of 2.02% MoM.

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