Auto financing in Pakistan increased to Rs386.29 billion in July 2026, registering a 1.2% month on month rise from Rs381.69 billion recorded in June, according to the latest data released by the State Bank of Pakistan (SBP). On a year on year basis, automobile financing posted a much stronger increase of 39.65%, compared with Rs276.61 billion recorded during the same month of the previous year.
The latest figures point to a substantial increase in outstanding financing for automobiles compared with the previous year. The year on year expansion comes as consumer credit across several categories also recorded growth during July 2026, contributing to an overall increase in financing extended to consumers. The monthly movement in auto financing was comparatively modest, with the Rs4.6 billion increase from June representing a 1.2% rise.
House building finance also recorded significant growth during the month. According to SBP data, outstanding consumer financing for house building reached Rs285.95 billion by the end of July 2026, representing a 38.12% increase from Rs207.0 billion recorded a year earlier. On a monthly basis, house building financing increased by 7.06% from Rs267.09 billion in June.
Financing for personal use showed another increase during July. Personal financing stood at Rs298.19 billion, up 13.51% compared with the corresponding period last year. On a month on month basis, personal use financing increased by 5.41%, indicating continued expansion across this segment of consumer credit.
Combined consumer financing reached Rs1.19 trillion during July 2026, registering a 30.46% year on year increase. Compared with Rs1.15 trillion recorded in June, overall consumer financing grew by 4.05% month on month. The figures cover financing across consumer categories and show that the increase was not limited to automobile loans, with house building and personal financing also contributing to the overall rise.
The growth in auto financing comes alongside stronger activity in Pakistan’s automobile sector. Separate data released for large scale manufacturing showed automobile output increased by 50.53% in June 2026 and recorded cumulative growth of 57.77% during July to June FY26. The automobile sector was among the strongest performing segments in the latest manufacturing data.
Beyond consumer financing, outstanding credit to Pakistan’s private sector stood at Rs10.9 trillion in July 2026, showing a 12.68% year on year increase. However, private sector credit declined 2.32% on a month on month basis from Rs11.16 trillion in June. The movement indicates that while the overall stock of private sector lending remained substantially higher than a year earlier, monthly lending levels were lower than the previous month.
Within private sector credit, financing to the manufacturing sector reached Rs5.79 trillion in July. Manufacturing loans increased 8.14% year on year but declined 3.67% month on month. The construction sector had outstanding borrowing of Rs222.22 billion, representing a 5.64% year on year increase, while its financing declined 5.9% from the previous month.
Agriculture, forestry and fishing also recorded an increase in borrowing. Loans to these sectors reached Rs681.44 billion in July 2026, up 37.73% year on year. On a monthly basis, financing to the sector increased 1.54%, showing continued expansion in lending to agriculture related activities.
The latest SBP figures therefore show broad based growth in several categories of financing, with automobile loans recording one of the largest year on year increases. Auto financing reached Rs386.29 billion in July, while house building financing stood at Rs285.95 billion and personal financing reached Rs298.19 billion.
The increase in automobile financing also coincides with the strong performance recorded by the automobile manufacturing segment during FY26. With auto financing expanding sharply compared with the previous year and automobile production showing substantial cumulative growth, both financing and manufacturing data point to increased activity in the sector.
Overall, the July figures show that consumer financing continued to expand in Pakistan, reaching Rs1.19 trillion and growing by more than 30% year on year. Auto financing remained a major component of consumer credit, with its outstanding balance rising by nearly 40% from the previous year, while house building and personal financing also posted notable increases.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.