The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has requested that the government remove the PKR 3 million (US$ 10,700) auto financing cap imposed by the State Bank of Pakistan (SBP), stating that the change would assist car buyers and support growth in the local automotive industry.

The request was made during the recent visit of Federal Minister for Commerce Jam Kamal Khan to the Bin Qasim automotive cluster, where he inspected production facilities of Pak Suzuki Motor Company and the Tecno Auto Glass Factory. The Minister received briefings on local automotive parts production and ongoing indigenisation initiatives.

During the visit, Jam Kamal Khan noted the contribution of the automotive sector to GDP, employment, and technology acquisition.

The Commerce Minister indicated that sales of locally produced vehicles are expected to increase in the coming years, supported by government policies restricting the import of used cars.

PAAPAM welcomed these measures, stating that they provide support to domestic parts manufacturers and strengthen the local supply chain.

Looking ahead, the Minister highlighted that changes to auto financing facilities are necessary to support the sector's growth.

PAAPAM stated that removing the SBP financing cap would allow more consumers to purchase locally manufactured vehicles, further supporting the domestic automotive ecosystem.