Auto financing in Pakistan rose sharply in June 2026.
According to Arif Habib Limited, outstanding auto loans increased to Rs. 382 billion in June 2026, up 38 percent from Rs. 277 billion a year earlier. On a monthly basis, auto financing also grew 3.4 percent from Rs. 369 billion recorded in May.
This is the highest level attained in history. The May 2026 level was the previous record-high.
The latest figures show that auto financing has continued its steady recovery after falling to around Rs. 225 billion in 2024 following aggressive monetary tightening and high borrowing costs. Since then, the financing portfolio has expanded consistently and has now reached its highest level in more than three years.
Overall private sector lending also maintained its upward trend. Total loans to the private sector stood at Rs. 11.16 trillion in June, compared with Rs. 9.67 trillion a year earlier, representing a 15.4 percent annual increase and a 4.4 percent rise from May.
Business lending, which makes up the largest share of private sector credit, increased to Rs. 9.60 trillion, up 14 percent year on year and 4.7 percent month on month.
Consumer financing also recorded strong growth, rising 25.4 percent year on year to Rs. 1.15 trillion. Within consumer lending, personal loans increased 7.7 percent to Rs. 283 billion, house building finance rose 29 percent to Rs. 267 billion, while outstanding credit card balances climbed 29.1 percent to Rs. 205 billion.
The continued growth in auto financing comes alongside a strong recovery in Pakistan’s automobile sector. Official manufacturing data recently showed car and jeep production surged by more than 60 percent during the first 11 months of FY2025-26, supported by improving demand, easing financing conditions and increased vehicle availability.
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