Karachi, January 10, 2026 – The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has called on the government to remove the Rs 3 million auto financing cap imposed by the State Bank of Pakistan (SBP), saying the move would help car buyers and accelerate growth in the local automotive industry.
The request came during the recent visit of Federal Minister for Commerce Jam Kamal Khan to the Bin Qasim automotive cluster, where he toured key production facilities of Pak Suzuki Motor Company and the Tecno Auto Glass Factory. The Minister was briefed on local automotive parts production and ongoing indigenization initiatives.
Speaking on the visit, Jam Kamal Khan praised the world-class quality of locally manufactured automotive components and highlighted the sector’s role in GDP growth, job creation, and technology acquisition. He described Pakistan’s automotive industry as a critical driver of economic activity.
The Commerce Minister expressed optimism that sales of locally produced vehicles would rise in the coming years, driven by government policies discouraging imports of used cars. PAAPAM welcomed these measures, emphasizing that they provide vital support to domestic parts manufacturers and strengthen the local supply chain.
Looking ahead, the Minister noted that Pakistan’s current annual car production of under 200,000 units could increase to 500,000–1 million units, creating significant investment opportunities. He stressed that enhanced auto financing facilities are essential to boost sales volumes and unlock the sector’s full growth potential.
By lifting the SBP financing cap, PAAPAM argues, more consumers would be able to purchase locally manufactured cars, further stimulating the domestic automotive ecosystem.