Auto financing surges 38% to Rs382 billion

Housing loans also show significant growth of 29%, reach Rs267b

KARACHI:

Bank lending to the automobile sector, housing finance, personal loans and private-sector credit exhibited a strong year-on-year growth in Pakistan.

According to statistics released by Arif Habib Limited (AHL), auto financing increased by 3.4% month-on-month and 38% year-on-year. Outstanding auto loans reached Rs381.69 billion in June 2026.

Earlier, Pakistan Automotive Manufacturers Association reported that Pakistan's car sales hit 22,741 units in June 2026, higher by 4% year-on-year and 29% month-on-month.

According to the AHL data, housing finance also recorded a significant growth, rising 6.35% month-on-month and 29% year-on-year. Banks disbursed Rs267.09 billion in housing loans in June 2026, compared with Rs251.14 billion in May 2026.

Personal loans edged higher by 2.84% month-on-month and 7.68% year-on-year, with outstanding personal lending advancing to Rs282.89 billion in June 2026. Overall consumer financing expanded by 25.37% year-on-year, reaching Rs1.15 trillion.

The report showed that lending to the private sector increased by 15.38% year-on-year to Rs11.16 trillion in June while the credit extended to the manufacturing sector went up 12.26% year-on-year to Rs6.01 trillion.

Meanwhile, loans to the construction sector increased 12.27% year-on-year to Rs236.15 billion. Financing for the agriculture, forestry and fisheries sectors surged 35.64% year-on-year to Rs671.11 billion, while lending to these sectors recorded a 9.53% month-on-month increase in June.