Islamabad, Apr 17, 2025: Auto financing in Pakistan has witnessed a notable rise, hitting Rs. 257.36 billion by the end of March 2025, compared to Rs. 248.82 billion recorded in February.
This steady growth highlights the increasing reliance of car buyers—both new and used—on bank-financed vehicle leasing options, as revealed in the latest figures issued by the State Bank of Pakistan (SBP).
When measured against the same period last year, vehicle financing has expanded by 7.5% year-on-year, showing a consistent upward shift in consumer behavior.
This upward movement in auto loans started gaining traction around August 2024, when the total stood at Rs. 227.3 billion.
However, the current figures still trail the historical peak of Rs. 368 billion, which was achieved in June 2022. Despite that, the ongoing rebound indicates renewed confidence in borrowing trends.
In broader terms, consumer lending also marked growth, climbing 8.25% YoY to reach Rs. 873.75 billion in March 2025.
Loans for personal expenditures increased to Rs. 267.67 billion, showing a 10.59% annual jump and a marginal 0.48% gain over February.
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Conversely, home construction financing showed a slight monthly dip of 0.11%, falling from Rs. 199.65 billion previously.
This suggests a minor pullback in real estate borrowing despite the broader upward trend in personal loans.
The overall private sector credit touched Rs. 9.44 trillion during the same period.
Within this category, the manufacturing sector led the way with borrowings of Rs. 5.41 trillion, an 11.92% increase compared to the previous year.
Similarly, the construction industry secured Rs. 212.76 billion in credit, representing a 9.43% yearly rise. Meanwhile, the agriculture, forestry, and fishing industries collectively availed loans worth Rs. 445.05 billion, reflecting the growing financing needs of these crucial sectors.
As Pakistan’s economic conditions show signs of stabilization, the return to credit-based vehicle and personal finance indicates improved market sentiment.
With consumer trust in financial institutions regaining pace, this momentum in lending could further support growth in multiple sectors in the coming months.
