SBP report shows sharp increase in car loans

ISLAMABAD: A significant increase has been recorded in loans given by banks for the purchase of vehicles.

According to the latest report of the State Bank, the total volume of auto financing reached Rs 319 billion in December 2025, which is 35.5% more than the same month last year.

In December 2024, this amount was Rs 235 billion, which shows that the trend of purchasing vehicles has accelerated significantly in a year.

According to the data, a slight increase was also seen in December compared to November 2025. The volume of auto financing in November was Rs 318 billion, which increased to Rs 319 billion in December. Thus, a 0.3% increase was recorded in this sector on a monthly basis, which indicates that the public is still interested in purchasing vehicles through bank financing.

The report states that not only vehicle loans but also total loans given to the private sector have increased. By December 2025, the volume of loans provided by banks to the private sector reached Rs 10,671 billion, while in December 2024 this amount was Rs 10,582 billion. Thus, a 0.8% increase in total loans was recorded on an annual basis.