Auto financing in Pakistan rose to Rs285.64 billion in July 2025, showing steady growth from Rs276.61 billion in June. This 3.27% increase also reflects a strong 25.28% rise compared to the Rs228 billion recorded in the same month last year. Despite rising interest rates, high car prices, and tighter loan rules, demand for vehicle financing continues to grow.
This trend is also seen in housing finance, which reached Rs208.48 billion in July. It increased by 0.69% from June and showed a 2.8% gain over last year. Personal home loans also featured a similar pattern. They rose up to Rs263.27 billion, with a yearly rise of 10.18 percent, and monthly growth of 0.21 percent.
As a result, the total consumer credit increased to Rs928.94 billion. This showed an improvement of 15.83 percent year-to-year and 1.69 percent growth compared to the previous month which demonstrated that consumer borrowing was quite strong.
Meanwhile, credit to the private sector dropped 1.94% month-on-month, settling at Rs9.48 trillion. Still, it remained 14.38% higher than last year. Within this, loans to manufacturers fell from June but grew 10.96% year-on-year, while construction lending rose to Rs216.13 billion. Borrowing in farming, forestry, and fishing also went up to Rs512.51 billion by July.
