Pakistan’s auto loans rise for 13th month in a row, reaching Rs. 319 billion in December 2025

Auto loans in Pakistan continued to rise for the 13th consecutive month, reaching Rs319 billion at the end of December 2025, slightly up from Rs 318 billion in November, according to data released by the State Bank of Pakistan (SBP).

Although the growth in December was modest compared to previous months, it can be attributed to delays in vehicle purchases due to the change in model year and new registration processes. Despite this, the auto financing recovery remains significantly below the peak seen in June 2022, when auto loans hit Rs. 368 billion amid car sales of around 240,000 units annually.

Topline Securities anticipated that new car models and falling interest rates would keep the auto financing pace despite the Rs. 3 million limit. 

Auto sales, which include cars, SUVs, pickups, and vans, saw a 46% increase during the first half of FY26, rising to 88,322 units from 60,676 units in the same period last year. The boost in sales is attributed to new entrants, easing inflation, lower interest rates, and an improving macroeconomic outlook.

Looking ahead, auto sales are expected to stay strong, supported by a 144% increase in imports of semi and completely knocked-down (CKD) kits, which reached $982 million in the first half of FY26, compared to $402 million in the same period last year. This increase comes despite claims of achieving higher localization in production.