Auto financing for vehicle purchases in Pakistan has seen a notable increase, according to the latest data from the State Bank of Pakistan.

By the end of March 2025, the volume of auto financing reached Rs257.36 billion, an increase from Rs248.82 billion in February.

This data reflects a rise of Rs8.54 billion in just one month, marking a significant development amid the current economic climate.

Analysts attribute this growth primarily to a recent decline in interest rates, which has encouraged consumers to approach banks for vehicle financing.

Financial institutions have successfully drawn in customers with attractive installment plans and discounted offers.

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Experts predict that if interest rates continue to fall, the upward trend in auto financing is likely to persist, signaling positive prospects for both the auto industry and the banking sector.