Car shortage stifles ride-hailing

The Express Tribune reported that ride-hailing has reached only about 5% of Pakistan's population, against roughly 20% globally. Wael Ibrahim, regional director for EMEA at inDrive, said a shortage of vehicles could restrain growth unless banks increase financing for freelance drivers. He described Pakistan as one of inDrive's fastest-growing markets, where the company now runs ride-hailing services in more than 20 cities.

Yasin Kodvavi, research head at Optimus Capital Management, said car financing has climbed about 35% to roughly Rs381 billion, compared with close to Rs275 billion twelve months earlier. He warned that vetting freelance borrowers would be difficult given unstable demand and income, and that the Rs3 million cap on auto loans remains in place despite repeated calls for Rs6 million.

Former PAAPAM chairman Abdul Rehman Aizaz said banks have generally preferred lending to the government over consumer credit, though freelance vehicle financing could create self-employment if safeguards are in place. Yango's 2024-25 Ride Safety Report recorded a 31% fall in grave traffic violations globally, and a 47% drop in reckless-driving incidents across MENA and South Asia.