Business
Auto financing hits 25-month high | The Express Tribune

KARACHI:
Auto financing continued its upward trajectory, hitting a 25-month high of Rs286 billion in July 2025, according to the latest data released by the State Bank of Pakistan (SBP) and compiled by Topline Research.
The July 2025 figures mark a 25% year-on-year (YoY) increase and a 3% month-on-month (MoM) rise, highlighting improving consumer appetite for car purchases amid an easing interest rate environment. This is the highest level since June 2023, when financing stood at Rs285 billion.
Despite the rebound, auto financing remains 22% lower than the all-time peak of Rs368 billion recorded in June 2022, when aggressive consumer borrowing coincided with strong vehicle demand. The subsequent decline was triggered by soaring borrowing costs, import restrictions on raw materials and automotive parts, and a broader economic slowdown that severely dented car sales and leasing activity.
Analysts believe the recent turnaround reflects recovering consumer confidence, driven by declining interest rates following the SBP’s monetary easing cycle, as well as stabilisation in the exchange rate and gradual improvement in supply chains. Auto financing is finally showing signs of recovery after two years of contraction. The consistent monthly growth suggests that demand is returning, and this momentum is likely to continue if monetary easing persists.
“The recovery reflects improving consumer demand amid falling interest rates and is expected to further lift auto sector sentiment, with stronger sales and earnings outlook for listed companies,” said market experts at Topline Research. The revival in auto financing is expected to boost sentiment in the automobile sector, which has faced one of its toughest downturns in recent history. Listed auto assemblers and allied sectors, such as parts manufacturers, may benefit through improved sales volumes and a stronger earnings outlook in the coming quarters.
Industry observers caution, however, that sustained growth will depend on further cuts in financing rates, stable macroeconomic conditions, and consumer purchasing power. With auto financing back on the rise, the sector may be entering a new growth cycle, giving much-needed support to Pakistan’s struggling economy.
Commenting on the recent rise in auto financing, auto industry expert Mashood Ali Khan said that while the sector is seeing renewed momentum, several economic challenges remain.
He noted that car financing had touched Rs360 billion in 2022, and to return to that level, Pakistan would require single-digit interest rates, compared with the current 11%. “If interest rates fall further, automobile sales will definitely get a boost. However, the industry faces very difficult challenges,” he said. Khan highlighted that despite some improvement, Pakistan’s foreign exchange reserves have not grown significantly, while budgetary measures tied to the International Monetary Fund (IMF) programme are gradually increasing import pressures. He warned that although inflation has been contained, a rapid cut in interest rates could reignite price pressures in the auto sector.
“The rupee has remained stable around 280, which is positive, but sustaining this stability will be difficult if inflation rises again,” he added. Another key obstacle, according to him, is that purchasing power has not improved sufficiently, leaving a gap between demand potential and actual consumer affordability.
He also stressed the need for policy stability to restore the confidence of industrialists and investors. “Sometimes imports of used cars are opened, sometimes restricted. This inconsistency shakes business trust. Over the past two and a half years, many industrialists and skilled youth have left the country,” he remarked.
Khan emphasised that to counter the challenges from lower interest rates, Pakistan must strengthen exports, an area that requires long-term planning, incentives, and facilitation in special economic zones. He also pointed to the concerns raised by chambers of commerce in recent months over unfriendly regulations, underlining the importance of supportive policies for SMEs and industrial protection.
“The direction is right, but stability and continuity in policies are crucial,” Khan concluded.
Business
Trade talks: India, EU wrap up 14th round of FTA negotiations; push on to seal deal by December – The Times of India

India and the 27-nation European Union (EU) have concluded the 14th round of negotiations for a proposed free trade agreement (FTA) in Brussels, as both sides look to resolve outstanding issues and move closer to signing the deal by the end of the year, PTI reported citing an official.The five-day round, which began on October 6, focused on narrowing gaps across key areas of trade in goods and services. Indian negotiators were later joined by Commerce Secretary Rajesh Agrawal in the final days to provide additional momentum to the talks.During his visit, Agrawal held discussions with Sabine Weyand, Director General for Trade at the European Commission, as both sides worked to accelerate progress on the long-pending trade pact.Commerce and Industry Minister Piyush Goyal recently said he was hopeful that the two sides would be able to sign the agreement soon. Goyal is also expected to travel to Brussels to meet his EU counterpart Maros Sefcovic for a high-level review of the progress made so far.Both India and the EU have set an ambitious target to conclude the negotiations by December, officials familiar with the matter said, PTI reported.Negotiations for a comprehensive trade pact between India and the EU were relaunched in June 2022 after a hiatus of more than eight years. The process had been suspended in 2013 due to significant differences over market access and tariff liberalisation.The EU has sought deeper tariff cuts in sectors such as automobiles and medical devices, alongside reductions in duties on products including wine, spirits, meat, and poultry. It has also pressed for a stronger intellectual property framework as part of the agreement.For India, the proposed pact holds potential to make key export categories such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery more competitive in the European market.The India-EU trade pact talks span 23 policy chapters covering areas such as trade in goods and services, investment protection, sanitary and phytosanitary standards, technical barriers to trade, rules of origin, customs procedures, competition, trade defence, government procurement, dispute resolution, geographical indications, and sustainable development.India’s bilateral trade in goods with the EU stood at $136.53 billion in 2024–25, comprising exports worth $75.85 billion and imports valued at $60.68 billion — making the bloc India’s largest trading partner for goods.The EU accounts for nearly 17 per cent of India’s total exports, while India represents around 9 per cent of the bloc’s overall exports to global markets. Bilateral trade in services between the two partners was estimated at $51.45 billion in 2023.
Business
Indias Real Estate Equity Inflows Jump 48 Pc In Q3 2025: Report

NEW DELHI: Equity investments in India’s real estate sector jumped 48 per cent year-on-year to $3.8 billion in the July-September period (Q3), a report said on Friday. This growth in inflow was primarily fuelled by capital deployment into land or development sites and built-up office and retail assets, according to the report by real estate consulting firm CBRE South Asia.
In the first nine months of 2025, the equity investments increased by 14 per cent on-year to $10.2 billion — from $8.9 billion in the same period last year.
The report highlighted that land or development sites and built-up office and retail assets accounted for more than 90 per cent of the total capital inflows during Q3 2025.
On the category of investors, developers remained the primary drivers of capital deployment, contributing 45 per cent of the total equity inflows, followed by Institutional investors with a 33 per cent share.
CBRE reported that Mumbai attracted the highest investments at 32 per cent, followed by Pune at around 18 per cent and Bengaluru at nearly 16 per cent.
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE, said that the healthy inflow of domestic capital demonstrates the sector’s resilience and depth.
“In the upcoming quarters, greenfield developments are likely to continue witnessing a robust momentum, with a healthy spread across residential, office, mixed-use, data centres, and I&L sectors,” he added.
In addition to global institutional investors, Indian sponsors accounted for a significant part of the total inflows.
“India’s ability to combine strong domestic capital with global institutional participation will remain a key differentiator in 2026 and beyond,” added Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India.
CBRE forecasts a strong finish for the investment activity in 2025, fuelled by capital deployment into built-up office and retail assets.
For the office sector, the limited availability of investible core assets for acquisition indicate that opportunistic bets are likely to continue gaining traction, the report noted.
Business
EY and Microsoft launch AI skills passport: Free program to train youth in AI; focus on career growth – The Times of India

EY and Microsoft on Saturday launched the AI Skills Passport, a free online learning initiative aimed at equipping Indian students and early-career professionals with essential artificial intelligence (AI) skills. The program targets individuals aged 16 and above and is designed to bridge the country’s growing AI skills gap, according to an EY statement, ANI reported.Part of a global effort that has already engaged over 40,000 participants worldwide, the AI Skills Passport offers self-paced learning modules spanning around 10 hours, available in both English and Hindi. The curriculum covers AI fundamentals, responsible AI, and practical applications across sectors including healthcare, finance, and technology. Participants also receive guidance on job readiness, including resume tips, interview support, and networking insights.Learners who complete the program are awarded a verifiable digital badge, enhancing their professional profiles. The initiative is part of EY Ripples, EY’s global corporate responsibility programme, and will partner with not-for-profit organisations to ensure students from economically weaker backgrounds have access to mentorship, learning, and career guidance.Monesh Dange, Partner and Leader, Alliances and Ecosystems, EY India, said, “In an era where AI is revolutionising work, the AI Skills Passport addresses India’s urgent need for skilled talent. Together with Microsoft, we aim to ensure the program is accessible and impactful at scale.”Bhaskar Basu, Enterprise Partnerships Leader, Microsoft India & South Asia, added, “AI is transforming India’s digital economy, and youth are at its core. The AI Skills Passport brings high-quality AI learning to everyone, accelerating Microsoft’s goal to equip 10 million Indians with AI skills by 2030.”
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