Auto financing in Pakistan grew sharply by 25.3% year-on-year (YoY) in July 2025, reaching Rs. 286 billion compared to Rs. 228 billion in the same month last year, according to data compiled by Arif Habib Limited (AHL) from the State Bank of Pakistan (SBP).
On a month-on-month (MoM) basis, auto loans also posted an increase of 3.3% from Rs. 277 billion in June 2025, continuing the upward trend that began in mid-2024 after a period of slowdown.
The rise in auto financing came despite overall loans to the private sector falling 1.9% MoM to Rs. 9.48 trillion in July. Within this, business lending declined 2.6% from the previous month, while consumer financing rose modestly by 1.7% to Rs. 929 billion.
Personal loans increased 2% MoM to Rs. 263 billion, and credit card borrowing rose 2.6% to Rs. 163 billion. House building finance also inched up 0.7% to Rs. 208 billion.
The data highlights a rebound in transport-related financing, particularly auto loans, which had dipped significantly in 2022–2023 due to higher interest rates, import restrictions, and weak consumer sentiment. Analysts attribute the recovery to improved macroeconomic stability, falling inflation, and lower borrowing costs.
According to SBP figures, total loans to the private sector expanded 14.4% YoY in July 2025, though business lending still accounts for the lion’s share at Rs. 8.2 trillion.