Automobile financing in Pakistan increased to Rs393.4 billion by the end of August 2026, recording growth of 1.84% compared with the Rs386.29 billion reported in July, according to the latest data released by the State Bank of Pakistan. The figures show continued expansion in financing extended for vehicle purchases during the month, with the outstanding amount also posting substantial growth when compared with the same period last year.
On a year-on-year basis, automobile financing increased by 33.77% in August 2026. The corresponding figure stood at Rs294.08 billion during August 2025, meaning the latest data reflects a sizeable increase in the amount of financing outstanding for automobiles over the past year. The monthly increase from July also indicates that automobile financing continued to expand despite the broader movements in consumer and private-sector credit during the review period.
The central bank data also showed notable growth in financing for house building. Consumer financing for house building reached Rs315.78 billion by the end of August 2026, representing a 49.45% increase from the level recorded a year earlier. On a monthly basis, house-building financing rose 10.43% from Rs285.95 billion in July, making it one of the areas with a significant increase in consumer financing during the month.
Financing for personal use stood at Rs296.68 billion in August 2026. This represented an increase of 12.61% compared with the same month last year. However, personal-use financing declined slightly on a month-on-month basis, falling 0.51% from the previous month. The movement in personal financing came alongside increases in automobile and house-building financing, contributing to the overall rise in credit extended to consumers.
Overall consumer financing reached Rs1.23 trillion during August, registering a 30.37% year-on-year increase. Compared with Rs1.19 trillion recorded in July, consumer financing grew by 3.52% on a monthly basis. The data points to higher outstanding consumer credit across several categories, with automobile, housing and personal financing collectively accounting for a significant portion of the total amount.
Beyond consumer credit, the State Bank of Pakistan data showed that outstanding credit to the private sector increased by 15.01% year-on-year to Rs10.91 trillion in August 2026. On a month-on-month basis, private-sector credit edged up by 0.09% from Rs10.9 trillion in July. The figures indicate that private-sector borrowing remained broadly stable on a sequential basis while maintaining a considerably higher level compared with the same period of the previous year.
Within private-sector credit, loans extended to the manufacturing sector reached Rs5.72 trillion during the review period. Manufacturing-sector borrowing increased by 11.34% year-on-year, although it declined by 1.2% compared with July. The sector therefore recorded annual growth alongside a modest monthly contraction in outstanding credit during August.
Credit extended to the construction sector stood at Rs222.33 billion in August 2026, showing a 3.96% year-on-year increase and a marginal 0.05% month-on-month rise. The figures indicate limited movement in construction-sector borrowing from July while maintaining growth over the corresponding period of the previous year.
The central bank’s latest data also highlighted increased borrowing by the agriculture, forestry and fishing sectors. Loans to these sectors rose to Rs687.86 billion in August 2026, representing a 33.51% increase on a year-on-year basis. On a month-on-month basis, financing for the same sectors grew by 0.94% compared with July. Together, the figures across consumer and private-sector financing provide an overview of credit activity in Pakistan during August, with automobile and house-building finance showing particularly notable annual and monthly increases.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.