Auto Financing in Pakistan Surges 25% in July 2025
Auto financing in Pakistan saw a sharp rise of 25.3% year-on-year (YoY) in July 2025, reaching Rs. 286 billion, up from Rs. 228 billion in the same month last year. The data, compiled by Arif Habib Limited (AHL) from the State Bank of Pakistan (SBP), also showed a month-on-month (MoM) increase of 3.3% from Rs. 277 billion in June, continuing the growth trend that started in mid-2024.
The surge in auto loans comes even as overall loans to the private sector declined 1.9% MoM to Rs. 9.48 trillion in July. Within this, business lending fell 2.6%, while consumer financing grew 1.7% to Rs. 929 billion.
Other segments of consumer credit also posted growth. Personal loans rose 2% MoM to Rs. 263 billion, credit card borrowing increased 2.6% to Rs. 163 billion, and house building finance inched up 0.7% to Rs. 208 billion.
Analysts attribute the rebound in auto financing to improved macroeconomic conditions, lower inflation, and declining borrowing costs. Auto loans, which had dipped sharply in 2022–2023 due to high interest rates and import restrictions, are now showing strong recovery.
According to SBP, total loans to the private sector expanded 14.4% YoY in July 2025, with business lending still dominating at Rs. 8.2 trillion.
