Car loans in Pakistan are surging! Auto financing in the country has seen a remarkable increase, reaching Rs. 319 billion by December 2025. This represents a significant 35.5 percent year-on-year (YoY) rise from Rs. 235 billion recorded in December 2024. Consequently, more buyers are now opting for bank leasing to acquire both new and used vehicles across Pakistan.
Understanding the Surge in Auto Financing
This substantial growth highlights a strong trend in the Pakistani automotive market. Month-on-month (MoM), bank loans for cars also experienced a positive trajectory, increasing by 0.3 percent. This consistent upward movement indicates robust consumer confidence and an expanding market for vehicle acquisition through financing.
Broader Consumer Financing Trends in Pakistan
Beyond car loans Pakistan, other consumer financing sectors also witnessed notable growth during the same period. This broader financial expansion reflects a dynamic economic environment.
Personal Loans for Housing
- Significant Increase: Personal loans specifically for house building surged by an impressive 10.3 percent YoY.
- Current Value: These loans now stand at Rs. 22.3 billion.
- Previous Year: In comparison, the figure was Rs. 20.2 billion in December 2024.
Credit Card Loans See Sharp Rise
Credit card usage and borrowing also saw a considerable boost. Specifically, credit card loans climbed by 30.5 percent YoY, reaching Rs. 182 billion. Previously, these loans stood at Rs. 139 billion in December 2024. Furthermore, this indicates a growing reliance on digital and credit-based transactions among consumers.
Overall Consumer Financing Growth
Overall, consumer financing across all categories grew by 15 percent YoY. The total reached Rs. 998 billion, up from Rs. 868 billion in the previous year. Clearly, the financial landscape in Pakistan is evolving, with various loan segments showing positive growth trajectories.
