PAAPAM Calls for End to Rs3 Million Limit on Car Loans

The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has urged the government to remove the Rs3 million cap on car financing, saying the limit is slowing growth in the local automotive sector.

Officials from PAAPAM said easing auto financing in Pakistan would boost consumer demand, strengthen domestic supply chains, and open new opportunities for local vehicle production. “Relaxed financing terms could significantly increase sales of locally manufactured cars and support the entire automotive ecosystem,” the association noted.

The call follows Federal Minister for Commerce Jam Kamal Khan’s recent visit to the Bin Qasim automotive cluster, where he toured major production facilities and observed the process of local parts manufacturing. Khan praised the quality of domestic automotive components, describing the sector as a key driver of job creation, GDP growth, and technological adoption.

“The government’s push to limit used car imports will encourage the sale of locally manufactured vehicles,” Khan said. He also highlighted that with proper support, Pakistan’s car production could grow from under 200,000 units annually to as many as 1 million, attracting investment and stimulating economic activity.

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PAAPAM welcomed government policies favoring local manufacturers, stressing that enhancing auto financing in Pakistan is crucial to unlocking the sector’s growth potential and meeting rising consumer demand.