The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has urged the government to remove the State Bank of Pakistan’s Rs3 million cap on car financing, arguing that the restriction is limiting consumer demand and constraining growth in the local automotive industry.
The auto association said easing financing terms would support higher vehicle sales, strengthen the domestic supply chain, and unlock the sector’s expansion potential.
The development came during Federal Minister for Commerce Jam Kamal Khan’s visit to the Bin Qasim automotive cluster of the PAAPAM, read a statement on Saturday.
During the visit, the minister toured the Tecno Auto Glass Factory and key production facilities of Pak Suzuki Motor Company, including the Press Shop, Injection Moulding, Engine, and Transmission units. He was briefed on local parts manufacturing activities and ongoing efforts toward indigenisation.
Expressing satisfaction over the quality of production, Jam Kamal Khan said it was heartening to witness world-class automotive parts being manufactured in Pakistan. He appreciated PAAPAM’s positive contribution to GDP growth, job creation, and the acquisition of modern technologies, describing the sector as a critical driver of economic activity.
The minister expressed optimism that sales of locally manufactured vehicles would improve significantly in the coming years, particularly due to government policies aimed at discouraging the import of used cars. PAAPAM representatives welcomed these measures, stating that they provide much-needed support to domestic parts manufacturers and help strengthen the local supply chain.
Highlighting future prospects, Jam Kamal Khan said Pakistan’s current local car production-below 200,000 units-has the potential to rise to between 500,000 and 1 million units, creating new investment opportunities and broader economic momentum. He also underscored the need to enhance auto financing facilities to encourage higher sales volumes of locally manufactured vehicles.