The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has called on the government to remove the Rs3 million cap on car financing imposed by the State Bank of Pakistan. The auto industry body argues that this restriction is limiting consumer demand and hindering growth in the local automotive sector.
As per a news report, the PAAPAM request follows a visit by Federal Minister for Commerce, Jam Kamal Khan, to the Bin Qasim automotive cluster, where he toured several key production facilities.Â
The association’s officials said that easing the financing terms would lead to higher vehicle sales, strengthen the domestic supply chain, and unlock the sector’s expansion potential.Â
During the visit, Khan was briefed on the local parts manufacturing process and ongoing efforts toward indigenisation. He expressed satisfaction with the quality of locally produced automotive parts, calling it a positive contribution to Pakistan’s GDP growth, job creation, and the adoption of modern technologies. He also described the automotive sector as a vital driver of economic activity.
Khan expressed optimism that sales of locally manufactured vehicles would increase in the coming years, especially with government policies aimed at reducing the import of used cars.Â
PAAPAM representatives welcomed these policies, stating they support domestic parts manufacturers and strengthen the local supply chain.
Looking ahead, Khan highlighted the potential for Pakistan’s car production to grow from less than 200,000 units annually to between 500,000 and 1 million units, creating new investment opportunities and boosting economic activity. He also stressed the importance of enhancing auto financing facilities to encourage higher sales of locally produced vehicles.
