Islamabad, May 20, 2025: Auto financing in Pakistan has experienced a notable rebound, reaching Rs. 263 billion by the end of April 2025, according to fresh data released by the State Bank of Pakistan (SBP).
This marks a sharp increase from Rs. 236 billion in March, signaling a growing trend of vehicle buyers opting for bank leasing solutions for both new and pre-owned cars.
This upward movement in auto financing in Pakistan began taking shape in August 2024, when financing volumes were recorded at Rs. 227.3 billion.
Though still below the record high of Rs. 368 billion witnessed in June 2022, the consistent monthly uptick indicates a potential shift in consumer confidence and market activity.
Experts believe the ongoing improvement in vehicle financing is tied to better interest rates and increased availability of used vehicles in the market.
“People are adjusting to the new pricing realities in the auto sector. Leasing makes it possible for middle-income buyers to stay in the game,” said an analyst at a local investment firm.
The broader consumer financing landscape also reflected a year-on-year rise, climbing 11.1% in April 2025 to reach Rs. 892 billion.
Notably, financing for personal use surged to Rs. 268 billion — a 12.7% YoY increase — with a modest 0.2% bump compared to March 2025.
On the flip side, house-building credit dipped slightly by 2.4% YoY, falling to Rs. 201 billion from Rs. 206 billion a year prior.
This decline hints at shifting consumer priorities, possibly driven by the rising costs of construction materials and economic uncertainty in the real estate sector.
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Meanwhile, the private sector’s outstanding credit stood at Rs. 9.48 trillion in April, showcasing the scale of financial activity in Pakistan’s commercial and consumer markets.
