Consumer borrowing in Pakistan continued to expand in August, with automobile financing rising to Rs393.4 billion as demand for consumer credit remained firm.
According to the latest data from the State Bank of Pakistan (SBP), auto financing increased 1.84 percent from Rs386.29 billion in July. On a yearly basis, car financing was up 33.77 percent, compared with Rs294.08 billion recorded in August 2025.
Housing finance also posted strong growth during the month. Outstanding consumer financing for house building reached Rs315.78 billion in August, showing a 49.45 percent increase from the same month last year. It also rose 10.43 percent from Rs285.95 billion in July.
Financing for personal use stood at Rs296.68 billion. It was 12.61 percent higher than a year earlier but declined 0.51 percent from the previous month.
Overall consumer credit rose 30.37 percent year on year to Rs1.23 trillion in August. Compared with Rs1.19 trillion in July, consumer financing increased 3.52 percent on a monthly basis.
The latest figures also showed continued growth in lending to the private sector. Outstanding private sector credit reached Rs10.91 trillion in August, up 15.01 percent from Rs9.49 trillion a year earlier. On a monthly basis, private sector borrowing edged up 0.09 percent from Rs10.9 trillion in July.
Manufacturing remained the largest recipient of private sector loans, with outstanding financing reaching Rs5.72 trillion. The figure was 11.34 percent higher than a year earlier but declined 1.2 percent from July.
Loans to the construction sector stood at Rs222.33 billion in August, increasing 3.96 percent year on year and 0.05 percent from the previous month.
Meanwhile, financing for agriculture, forestry and fishing rose to Rs687.86 billion. Lending to these sectors increased 33.51 percent compared with August last year and grew 0.94 percent from July.
The data points to broader growth in bank lending, with consumer financing and credit to key productive sectors both showing significant yearly increases during the month.
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