Auto Financing in Pakistan reaches PKR 271 Billion in May 2025

Pakistan’s auto financing sector continues to grow, showing a positive trend once again. According to data released in early June 2025, more and more consumers are turning to car financing as a way to purchase vehicles.

Total Financing Volume:

As reported by the State Bank of Pakistan, auto financing reached PKR 271.24 billion in May 2025. This shows a 3.01% increase compared to April 2025.

Year-on-Year Growth:

When compared to the same month last year (May 2024), auto financing has grown by 16.51%. This strong yearly growth highlights the increasing trust and confidence of buyers in the auto market.

Reasons Behind the Growth:

• Experts point out several reasons for this upward trend:
• A noticeable drop in interest rates, now as low as 12%
• Improved availability of vehicles across the market
• Attractive loan offers from commercial banks, including flexible repayment plans

Advice for Car Buyers:

If you’re planning to buy a car, now might be a great time. Many banks are offering auto loans with low down payments and easy monthly installments. With lower interest rates and better car availability, owning a car is becoming easier for many Pakistanis.