PAAPAM urges removal of Rs3 million car financing cap to boost local auto industry growth -

PAKISTAN – Auto Industry

Federal Minister for Commerce Jam Kamal Khan visited the Bin Qasim automotive cluster of the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), reaffirming the government’s commitment to strengthening Pakistan’s local automobile manufacturing and export potential.

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 indigenization.

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 Commerce 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 that 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.

PAAPAM requested the Federal Minister for Commerce to consider the removal of the State Bank’s existing Rs 3 million caps on car financing, noting that easing this restriction would facilitate car buyers and further accelerate growth in the local automotive industry. – PR

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