Pakistan car sales surge by 61 percent YoY due to lower interest rates, newer variants— report 

This photograph taken on November 11, 2024 shows a security guard (R) standing beside a Toyota Hilux pick-up truck at a car showroom yard in Karachi. (AFP/File)
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Updated 12 February 2025
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Pakistan car sales surge by 61 percent YoY due to lower interest rates, newer variants— report 

  • Pakistan’s central bank has slashed interest rates from all-time high of 22 percent in June 2024 to 12 percent 
  • Two and three-wheelers’ sales increased by 33 percent year-on-year and 18 percent month-on-month, says brokerage house

ISLAMABAD: Pakistan’s car sales surged by 61 percent year-on-year (YoY) in January due to lower interest rates, increased customer confidence and newer variants entering the market, a top brokerage house said in its report this week. 

Pakistan car sales were clocked in at 17,010 units in January 2025, reflecting a 61 percent YoY surge and a 73 percent month-on-month (MoM) increase, Topline Securities said in its report on Tuesday. 

Pakistan’s central bank last month announced cutting its key interest rate by 100 basis points to 12 percent. The State Bank of Pakistan (SBP) has slashed rates from an all-time high of 22 percent in June 2024 in one of the most aggressive moves among central banks of emerging markets. Lower interest rates charged by the SBP means commercial banks also lower the interest rates they charge on loans, including auto loans. 

“The YoY rise in car sales is driven by lowered interest rates, improved consumer confidence, and the introduction of newer variants and models,” Topline Securities said in its report. 

“MoM increase is primarily due to the low base effect, as December sales are typically low with buyers delaying purchases for new-year registrations, and SAZEW data not being released leading to an uptick in January,” it added. 

For the seven months of the current financial year, 7MFY25, auto sales have surged to 77,686 units, a 55 percent YoY rise from 49,989 units in 7MFY24.

It said all auto companies have seen a rise in YoY and MoM car sales. 

“Two and three-wheelers’ sales increased by 33 percent YoY and 18 percent MoM totaling to 139,161 units (2.5-year high) in January 2025,” the report said. 

It said the tractor industry recorded sales of 2,761 units, marking a 28 percent YoY and 61 percent MoM decrease, while truck and bus sales in Jan 2025 were up 2.57x YoY and 3.22x MoM, reaching 621 units after 3 years (last recorded in January 2022).

 “Auto sales have seen a boost and this is expected to continue as auto financing recovers amidst interest rates fall and new variants enter the market,” the report concluded. 


Pakistan says Iraq expressed ‘keen interest’ in JF-17 jets at air chiefs meeting

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Pakistan says Iraq expressed ‘keen interest’ in JF-17 jets at air chiefs meeting

  • Pakistan’s defense sector has drawn growing interest and investment since a four-day standoff with India in May last year
  • Many countries have since increased defense engagement, while multiple others have proposed learning from Pakistan’s expertise

ISLAMABAD: Pakistan’s military said on Saturday that Iraq had shown “keen interest” in its JF-17 Thunder and Super Mushshak aircraft at a meeting between chiefs of the two air forces.

Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu called on Lt. Gen. Staff Pilot Mohanad Ghalib Mohammed Radi Al-Asadi, commander of the Iraqi Air Force, during his official visit to Iraq.

The Pakistani air chief was accorded a guard of honor at the Iraqi Air Force headquarters, symbolizing the strong bond of mutual respect, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.

“Discussions focused on enhancing bilateral military cooperation, with emphasis on joint training, capacity-building and improving operational cooperation,” the ISPR said.

“The Iraqi Air Chief praised PAF’s professionalism and technological advancement, expressed interest in benefiting from PAF’s world-class training and expressed keen interest in JF-17 Thunder fighter jets, Super Mushshak trainer aircraft.”

Pakistan’s defense sector has drawn growing interest and investment, particularly since a four-day India-Pakistan military standoff in May last year. Islamabad claimed victory in the standoff, saying it had shot down six Indian aircraft, including French-made Rafale jets. India acknowledged losses but did not specify a number.

Many countries have since stepped up defense engagement with Pakistan, while delegations from multiple other nations have proposed learning from Pakistan Air Force’s multi-domain air warfare capabilities that successfully demonstrated how advanced Chinese military technology performs against Western hardware.

Pakistan markets the Chinese co-developed JF-17 as a lower-cost multi-role fighter and has positioned itself as a supplier able to offer aircraft, training and maintenance outside Western supply chains.

Islamabad is in the final phases of striking a $1.5-billion deal to supply weapons and jets to Sudan in a major boost for Sudan’s army that has been battling the paramilitary Rapid Support Forces, Reuters reported this week, citing a former top air force official and three sources.

The South Asian country reached a deal worth over $4 billion to sell military equipment to the Libyan National Army, Reuters report last month, citing Pakistani officials. The deal, one of Pakistan’s largest-ever weapons sales, included the sale of 16 JF-17 fighter jets and 12 Super Mushshak trainer aircraft for basic pilot training.