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Auto financing hits 25-month high | The Express Tribune

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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.



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Top stocks to buy today: Stock recommendations for August 28, 2025 – check list – The Times of India

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Top stocks to buy today: Stock recommendations for August 28, 2025 – check list – The Times of India


Top stocks to buy today (AI image)

Top stock market recommendations: According to Aakash K Hindocha, Deputy Vice President – WM Research, Nuvama Professional Clients Group, Nykaa, Kaynes, and Dr Reddy’s Laboratories are the top buy calls for today. Here’s his view on Nifty, Bank Nifty and the top stock picks for August 28, 2025:Index View: NiftyAfter an inside bar formation on Monday, Nifty opened with a gap down reeling all throughout the session ahead of its trading holiday on Wednesday. The index has closed below its trailing support of 24800 allowing for further downside to be opened for 24500 / 24350. Nifty has also formed a bearish head and shoulders formation on daily charts with a neck line support seen at 24450. A break below the same post monthly expiry could reel in further pressure on the index.Bank NiftyUnderperforming Nifty, Bank has broken its support of 55050 opening for a test of sub 54000 odd levels to begin with. The index has also closed at a 3.5 month low on daily charts ahead of its monthly expiry scheduled on Thursday. 55000 is likely to act as resistance on the upside while the index slides below sub 54000 levels in the coming week.NYKAA (BUY):

  • LCP: 231.65
  • Stop Loss: 223
  • Target: 252

Stock has been gaining traction ever since its 3 year triangle breakout seen in June 2025. For now NYKAA has given the highest ever close in past 3 years of trading along with a huge cup and handle breakout on daily and weekly charts. This opens up for a 18-20% trading buy target on the stock, yet we would advise for an initial uptick being 250+ on this leg.KAYNES (BUY):

  • LCP: 6197
  • Stop Loss: 5980
  • Target: 6620

After a cup and handle breakout in early August 2025, stock has been consolidating near the breakout zone for the past 4 weeks now. Last week’s price action suggests further move northwards from CMP as the stock has completed multiple retests of its ongoing breakout.Dr Reddy’s Laboratories (BUY):

  • LCP: 1263
  • Stop Loss: 1230
  • Target: 1355

Sustaining above its 200 DMA support, DRREDDY’s has also given a bullish flag breakout on daily charts. This allows its initial upside to open for the 1350-1360 zone where it could meet another potential breakout on upside.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)





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India may ask EU for concessions on lines of its deal with US – The Times of India

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India may ask EU for concessions on lines of its deal with US – The Times of India


NEW DELHI: Government is going to push for bridging the gaps on several contentious issues in trade talks with the European Union next month, while also demanding that the trading bloc offer concessions on carbon tax on the lines of the deal with the US, an official said Wednesday.“We are in the last mile, quite a few things are narrowing down. There are a handful of major issues and we are trying to narrow the gaps and then leave it to the leaders to take a political call,” the official said ahead of the next round of talks scheduled for Sept 8-12. EU commissioner for trade and economic security MaroS Šefcovicis also expected to travel to the Capital after the official level meeting to hold consultations with commerce and industry minister Piyush Goyal.Both sides have set an year-end deadline to finalise the agreement and India is keen that it fills the missing link in Europe, having signed agreements with the UK and the four nation European Free Trade Association, comprising Switzerland, Norway, Iceland and Liechtenstein.The deals are part of efforts to push for a diversified trade basket that provides Indian exporters access to crucial markets. India already has trade pacts, from Australia to Asean, the UAE and Mercosur countries, and is seeking more deals.Sources suggested that govt will help exporters diversify, with the focus expanded from 20 countries to 50, while also coming out with export promotion measures to overcome the challenge of US tariffs. Intensive consultations are lined up with exporters in the coming days.Govt officials said based on the feedback, strategies to offset the impact of the US tariffs, including support from the Centre, will be devised.Outreach in countries, including the UK, Japan, and South Korea, to push textiles exports are also planned, with similar initiatives planned for other sectors. In case of textiles for instance, 40 potential markets have been identified and in each case a targeted approach is proposed, positioning Indian companies as reliable suppliers of quality, sustainable, and innovative textile products. Official said that export promotion councils (EPCs) will be the mainstay of the diversification strategy.





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Baby sleeping bags being sold online ‘pose suffocation risk’, Which? warns

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Baby sleeping bags being sold online ‘pose suffocation risk’, Which? warns



More than 30 baby sleeping bags found on online marketplaces including Amazon and eBay pose a suffocation risk, according to an investigation.

Which? said online marketplaces had been allowing the sale of baby sleeping bags similar or identical to products that were officially recalled by the Office for Product Safety and Standards (OPSS) for suffocation risks.

A common characteristic of the products found by Which? were hoods which could cover a baby’s head and face and result in suffocation, the watchdog said.

The inclusion of hoods does not comply with the British Standards Institution’s safety standards for this reason.

Some of the sleeping bags Which? looked at, such as a teddy bear-style blanket on Amazon Marketplace, did not have arm holes, despite sleeping bags needing them to meet the safety standard.

Those without can cause a baby to slip down inside the sleeping bag, covering their face and risking suffocation.

Which? also found a sack-style sleeping bag listing on eBay which showed a baby being “positively swamped” by the item.

The consumer group also found five listings on Etsy that it was “concerned about”, with two appearing to be identical to recalled products, and the other three in a similar style and listed as sleeping bags.

Which? is urging shoppers to avoid baby sleeping bags with hoods or excess material, such as large bows or other novelty additions, which risk covering a baby’s head and face while they move around in their sleep.

It is best to always use a sleeping bag with arm holes as these help to stop babies slipping down inside the bag.

Other items to avoid included products sold as multipurpose items, such as a swaddle, stroller cover and baby cocoon as well as a sleeping bag, to ensure individual items conform to safety standards.

Which? said it was concerned the products continued to be sold despite market surveillance undertaken by the OPSS earlier this year.

The regulator undertook test purchasing for a range of items sold online, including baby sleeping products, and worked with online marketplaces to remove the listings.

However Which? said it found 35 potentially lethal sleeping bags still being sold just four months later.

Sue Davies, Which? head of consumer protection policy, said: “It’s outrageous that dangerous baby sleeping bags are still being sold on online marketplaces.

“Our previous investigations showed this is part of a wider pattern: unsafe products are removed, only to resurface. The only way to break this cycle is by holding online marketplaces legally accountable, with tough penalties for failures.”

An Amazon spokesman said: “We require all products offered in our store to comply with applicable laws, regulations and Amazon policies.

“The products flagged are not in scope of the safety alerts shared by Which?.

“If customers have concerns about an item they’ve purchased, we encourage them to contact our customer service directly so we can investigate and help resolve their issue.”

An eBay spokeswoman said: “Consumer safety is a top priority for eBay. We work diligently to keep our site safe and prevent prohibited listings through seller compliance audits, block filter algorithms for unsafe listings, and AI-supported monitoring by our team of in-house specialists.

“These proactive measures have prevented millions of potentially unsafe products from being listed every year. Listings that violate eBay policy, including those identified in this investigation, are swiftly removed.”

Etsy has been approached for comment.



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