Auto Financing Rises to Rs285B in July

Islamabad, August 27, 2025, 10:20 PM PKT — Automobile financing in Pakistan has surged to Rs285.64 billion in July 2025, up 3.27% from Rs276.61 billion in June and 25.28% from Rs228 billion in July 2024, as State Bank of Pakistan (SBP) data reveals, defying high interest rates, rising car prices, regulatory curbs on auto loans, and higher import duties. Consumer financing for house building hit Rs208.48 billion, up 2.8% year-on-year and 0.69% month-on-month from Rs207.04 billion, while personal loans reached Rs263.27 billion, climbing 10.18% year-on-year and 0.21% month-on-month.

Overall consumer credit soared 15.83% year-on-year to Rs928.94 billion, a 1.69% rise from Rs913.54 billion in June, with private sector lending jumping 14.38% to Rs9.48 trillion (down 1.94% from Rs9.67 trillion month-on-month). Manufacturing loans stood at Rs5.19 trillion, up 10.96% year-on-year but down 2.99% month-on-month, while construction borrowing reached Rs216.13 billion, up 14.1% year-on-year and 2.75% month-on-month, and agriculture, forestry, and fishing loans expanded to Rs512.51 billion, up 29.52% year-on-year and 3.59% month-on-month. This credit growth highlights robust lending in automobile, housing, and agriculture, per reports. Web context on lending trends shows past volatility, while posts found on X reflect optimism mixed with caution—some cheer growth, others question sustainability. Critically, the narrative of “economic recovery” may mask underlying risks—web data hints at debt pressures, and X sentiment suggests distrust in long-term stability, pointing to potential challenges.