Pakistan’s auto financing reaches record high of PKR 393.4 billion
Auto financing rises 33.8% from a year earlier as lower borrowing costs and improving vehicle demand support growth.
Auto financing in Pakistan reached an all-time high of PKR393.397 billion in August 2026, according to data from the State Bank of Pakistan.
The figure was up 33.8% from PKR294.075 billion in August 2025 and increased from PKR381.687 billion in June 2026, showing continued growth in borrowing for vehicle purchases.
The latest figure also marks a further rise from the previous record of around PKR368 billion reached in June 2022. Auto financing crossed that earlier peak during 2026 and has continued to rise in subsequent months.
The sustained increase comes as borrowing costs have eased significantly from their previous highs. Lower interest rates have reduced financing costs for consumers and helped support demand for vehicle loans.
An analyst said the rise in auto financing reflects a combination of lower borrowing costs, improving consumer confidence and a gradual recovery in vehicle demand. The analyst added that more consumers may be considering bank financing as monthly repayment costs become relatively more manageable.
However, high vehicle prices and household affordability remain key factors that could limit the pace of recovery, the analyst said. The growth in financing may therefore continue to depend on interest rates, vehicle prices and consumer purchasing power.
The increase in auto financing also comes alongside a recovery in Pakistan's automobile market, with vehicle sales showing year-on-year growth in recent months.
The latest SBP data indicates that auto financing has now risen substantially from the level recorded a year earlier, highlighting stronger demand for consumer credit in the automobile sector.
