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Auto financing in Pakistan experienced a steady rebound, climbing to Rs257.36 billion in March 2025, according to the latest data from the State Bank of Pakistan (SBP). This marks a 3.43% increase month-on-month from Rs248.82 billion in February, indicating a gradual recovery in the consumer lending space.
On an annual basis, car financing rose by 7.49% up from Rs239.44 billion in March 2024, despite several economic headwinds such as high interest rates, escalating car prices, stricter lending rules, and increased taxes on auto imports.
In comparison, housing finance declined to Rs199.43 billion, reflecting a 3.08% drop YoY, and a marginal 0.11% decrease month-on-month from February.
Conversely, personal loans continued on an upward trajectory, hitting Rs267.67 billion in March—a 10.59% YoY increase and 0.48% MoM rise.
Collectively, overall consumer financing reached Rs873.75 billion, marking an 8.25% increase compared to last year, and 0.74% higher than the previous month’s Rs867.35 billion.
Further SBP data highlights that credit to the private sector expanded by 12.34% YoY, totaling Rs9.44 trillion. On a monthly basis, this shows a 1.49% rise.
Sector-wise:
- Manufacturing loans hit Rs5.41 trillion, up 11.92% YoY.
- Construction sector borrowings rose to Rs 212.76 billion, up 9.43% YoY.
- Agriculture, forestry, and fishing sectors received Rs445.05 billion in loans, reflecting a 13.49% YoY boost.
These trends suggest cautious optimism in consumer and private sector borrowing despite macroeconomic challenges.
