Automobile financing in Pakistan reached Rs248.82bn in February 2025, reflecting a 3 per cent increase from the Rs241.6bn recorded in January 2025, according to the State Bank of Pakistan (SBP).
On a year-on-year basis, car financing saw a modest rise of 2.42 per cent, up from Rs242.95bn in the same period last year. However, the overall growth in financing has been restrained by factors such as higher interest rates, increased car prices, stricter loan regulations, and elevated taxes on car imports and their parts.
In the housing sector, SBP data revealed that consumer financing for house building stood at Rs199.59bn by the end of February 2025, marking a 3.65 per cent decline year-on-year. Month-on-month, housing loans also dropped slightly by 0.22 per cent from Rs200.02bn in January.
Personal loans, however, presented a contrasting trend. Financing for personal use reached Rs264.75bn in February, showing a 9.34 per cent increase year-on-year and a 4.66 per cent rise from January.
Overall, consumer credit surged by 6.77 per cent year-on-year, reaching Rs865.65bn in February. Month-on-month, consumer financing recorded a 2.52 per cent increase from Rs844.37bn in January.
The SBP’s data also highlighted that outstanding credit to the private sector grew by 10.51 per cent year-on-year to Rs9.3tr in February. However, on a monthly basis, private sector loans declined by 3.91 per cent from Rs9.68tr in January.
Breaking it down by sectors, loans to the manufacturing sector reached Rs5.35tr, reflecting a 10.2 per cent rise year-on-year but a 5.67 per cent decrease from the previous month. The construction sector reported Rs210.58bn in borrowing, with a 6.04 per cent year-on-year increase but a 0.92 per cent month-on-month decline.
Read more: Car sales in Pakistan drop 29 per cent in February despite yearly growth
