KARACHI: Pakistan’s automotive sector is showing clear signs of recovery after a prolonged slowdown, with auto financing reaching its highest level in 33 months.
According to Topline Securities, the volume of auto financing in November 2025 rose to Rs. 318 billion, up from Rs. 235 billion in November 2024. This marks a 36% increase year-on-year and a 1% rise compared to the previous month.
Despite this growth, the current level remains 14% below the historical peak of Rs. 368 billion recorded in June 2022.
Experts attribute the increase to a significant reduction and stability in interest rates, which has boosted consumer confidence and encouraged vehicle purchases.
Trading economics reports that the interest rate has remained steady at 11% from May 2025 to mid-December, supporting greater activity in the automotive financing sector.
