According to information received from sources, the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAPAM) has demanded that the government remove the Rs 3 million cap imposed by the State Bank on car financing (vehicle loans).
Sources further said that the association believes this restriction is limiting consumer demand and hindering the growth of the local automotive industry.
The automotive association stated that easing financing (loan) conditions would lead to an increase in vehicle sales, strengthen the local supply chain, and create opportunities for expansion in the sector.
According to a statement issued on Saturday, this development came to light during the visit of Federal Minister for Commerce, Jam Kamal Khan, to PAPAM’s Bin Qasim Automotive Cluster.
During the visit, the federal minister inspected key production facilities of Techno Auto Glass Factory and Pak Suzuki Motor Company, including the press shop, injection molding unit, engine, and transmission units. He was briefed on efforts underway for local manufacturing of auto parts and industrialization, including the use of local resources.
Expressing satisfaction with the quality of production, Jam Kamal Khan said it was heartening to see world-class automotive parts being manufactured in Pakistan. He appreciated PAPAM’s positive role in contributing to GDP growth, generating employment opportunities, and acquiring modern technologies, and termed the sector an important driver of economic activity.
The federal minister expressed hope that sales of locally manufactured vehicles would improve significantly in the coming years, especially due to government policies aimed at discouraging the import of used (second-hand) vehicles. PAPAM representatives welcomed these measures, saying they would help strengthen the local supply chain.
Highlighting future prospects, Jam Kamal Khan said that Pakistan’s current local car production, which is less than 200,000 units, could be increased to between 500,000 and 1 million units, creating new investment opportunities and boosting economic activity.
He also emphasized the need to improve auto-financing facilities in order to increase the sale of locally manufactured vehicles.
