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.
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