Auto financing in Pakistan has continued to grow, reaching around Rs 336 billion in February, according to data from the State Bank of Pakistan. This marks the 15th straight month of increase, showing steady demand for car loans across the country.
Experts say this rise is mainly driven by strong consumer interest in both new and used vehicles. Many buyers are choosing bank financing to manage high car prices, which have increased in recent years due to inflation and higher import costs. Even with fewer working days in February, the demand remained strong.
Another key reason behind the growth is the arrival of new car models and yearly upgrades. Many people prefer to buy vehicles during these periods, which pushes up loan applications. Banks and financial institutions have also made financing easier, encouraging more people to apply.
However, the increase in auto loans also raises concerns. Higher borrowing means more financial pressure on consumers, especially if interest rates rise again. At the same time, it adds to overall credit growth in the economy, which needs careful monitoring.
Despite these concerns, the upward trend shows that the auto market in Pakistan remains active. If economic conditions stay stable, auto financing may continue to grow in the coming months, supported by demand and easier access to loans.
