KARACHI: Auto financing in Pakistan has seen a sharp jump, climbing 20 percent over the year, according to fresh data released by the State Bank of Pakistan (SBP).
As per the SBP’s report, the total loans taken from banks for purchasing vehicles increased from Rs231 billion last year to Rs277 billion this year. Even within a single month, auto loans rose from Rs271 billion to Rs277 billion – showing a steady upward trend.
Private sector borrowing also picked up speed, reaching Rs9.626 trillion in June 2025 – up by 12.3 percent year-on-year.
Business loans alone shot up by 13.2 percent compared to the same period last year.
On the consumer front, credit card usage saw a major boost, surging by 29.7 percent, as more people leaned on plastic money to make ends meet. Meanwhile, loans for house building showed only a modest increase of 1.7 percent, indicating slower growth in the housing sector.
Analysts say rising auto loans reflect both consumer confidence and a shift towards easy monthly installments as car prices remain high. With inflation biting hard, more people are turning to credit cards and installment plans to manage day-to-day expenses.
All eyes are now on the coming months to see whether this upward trend continues or hits the brakes due to rising interest rates or stricter lending rules.
