Bank Loans for Cars Up 7.5% in March 2025

Auto financing in Pakistan has increased to Rs. 257.36 billion at the end of March, up from Rs. 248.82 billion in February, as buyers increasingly turn to bank leasing for new and used vehicles, according to latest data from the State Bank of Pakistan. Compared to March 2024, car financing is up 7.5 percent year-on-year (YoY). The trend of improving auto financing began in August 2024, when the total stood at Rs. 227.3 billion. However, it is still below the peak of Rs. 368 billion reached in June 2022. Meanwhile, consumer financing rose 8.25 percent YoY in March 2025 to Rs. 873.75 billion. Financing for personal use rose to Rs. 267.67 billion, showing a 10.59 percent YoY rise and a 0.48 percent increase month-on-month. However, credit for house building registered a slight month-on-month decline of 0.11%, down from Rs199.65 billion in the previous month. Outstanding credit to the private sector reached Rs. 9.44 trillion in March. Within private sector borrowing, loans to the manufacturing sector totaled Rs. 5.41 trillion, rising 11.92 percent YoY. The construction sector’s borrowing stood at Rs. 212.76 billion, an increase of 9.43 percent YoY. Credit to the agriculture, forestry, and fishing sectors climbed to Rs. 445.05 billion in March 2025.