Editing Economy of Pakistan (section)

==== Manufacturing ====
Manufacturing is the largest of Pakistan's industrial sectors, accounting for approximately 12.13% of GDP.<ref>{{cite web|url=https://data.worldbank.org/indicator/NV.IND.MANF.ZS?locations=PK|title=Manufacturing, value added (% of GDP)|website=The World Bank}}</ref> The manufacturing sub-sector is further divided into three components: large-scale manufacturing (LSM) with a share of 79.6% in the manufacturing sector, small-scale manufacturing with a share of 13.8% in the manufacturing sector, while slaughtering contributes 6.5% to manufacturing.<ref>{{Cite book |url=http://www.finance.gov.pk/survey_1718.html |title=Pakistan Economic Survey 2017–18 |chapter-url=http://www.finance.gov.pk/survey/chapters_18/03-Manufacturing.pdf |chapter=Chapter 3: Manufacturing and Mining |publisher=Ministry of Finance |access-date=25 May 2019}}</ref> Major sectors in industries include [[cement]], [[fertiliser]], [[edible oil]], [[sugar]], [[steel]], [[tobacco]], [[chemicals]], [[machinery]], [[food processing]], and medical instruments, primarily surgical.<ref>{{cite report |title=The Sectoral Analysis of Surgical Instruments of Pakistan |author=M. Rizwan Manzoor |url=http://www.pitad.org.pk/Publications/27-Pakistan%20India%20Trade%20Liberalization%20Sectoral%20Study%20on%20Surgical%20Industry.pdf |publisher=PITAD |access-date=25 May 2019}}</ref><ref>{{cite report |url=http://rcci.org.pk/wp-content/uploads/2012/12/SurgicalIndustry.pdf |title=Pakistan Surgical Industry |author=Aaliya Ahmed |date=1 September 2010 |publisher=The Rawalpindi Chamber of Commerce & Industry |access-date=25 May 2019 |archive-date=8 March 2018 |archive-url=https://web.archive.org/web/20180308231400/http://rcci.org.pk/wp-content/uploads/2012/12/SurgicalIndustry.pdf |url-status=dead }}</ref><ref>{{cite report |title=Surgical & Medical Instruments Industry of Pakistan |url=http://www.tdap.gov.pk/doc_reports/TDAP_Report_on_Surgical_%26_Medical_Instuments_Industry_in_Pakistan.pdf |publisher=TDAP |access-date=25 May 2019 |archive-date=5 August 2020 |archive-url=https://web.archive.org/web/20200805073738/https://www.tdap.gov.pk/doc_reports/TDAP_Report_on_Surgical_%26_Medical_Instuments_Industry_in_Pakistan.pdf |url-status=dead }}</ref> Pakistan is one of the largest manufacturers and exporters of [[surgical instruments]].<ref>{{cite web |url=https://www.tradeford.com/forum/world-s-leading-surgical-instruments-producers_f255.html |title=World's Leading Surgical Instruments Producers |author=Chin |date=24 May 2012 |website=TradeFord}}</ref><ref>{{cite web |url=https://www.dawn.com/news/1279191 |title=Pakistan's shadow surgical instruments' sector |first=Mubarak Zeb|last=Khan|date=22 August 2016 |work=Dawn News |access-date=25 May 2019}}</ref>

{| class="wikitable"
|+Production of selected manufactured goods<ref>{{Cite web |title=PBS statistics |url=https://www.pbs.gov.pk/content/qim |access-date=2024-09-17 |website=pbs.gov.pk}}</ref>
!Manufactured goods
!Unit of quantity
!2016
!2017
!2018
!2019
!2020
!2021
!2022
!2023
!2024
|-
!Cotton yarn
| rowspan="10" |Metric tonne (000)
|3,406
|{{increase}}3,428
|{{increase}}3,430
|{{increase}}3,431
|{{decrease}}3,060
|{{increase}}3,442
|{{increase}}3,459
|{{decrease}}2,695
|{{decrease}}2,477
|-
!Jute goods
|55
|{{increase}}60
|{{increase}}74
|{{decrease}}67
|{{decrease}}65
|{{increase}}70
|{{decrease}}58
|{{increase}}63
|{{decrease}}41
|-
!Cooking oil
|380
|{{increase}}390
|{{increase}}391
|{{increase}}406
|{{increase}}442
|{{increase}}460
|{{increase}}510
|{{increase}}567
|{{increase}}642
|-
!Sugar
|5,115
|{{increase}}7,049
|{{decrease}}6,566
|{{decrease}}5,260
|{{decrease}}4,881
|{{increase}}5,694
|{{increase}}7,921
|{{decrease}}6,709
|{{increase}}6,796
|-
!Cement
|35,432
|{{increase}}37,022
|{{increase}}41,148
|{{decrease}}39,924
|{{decrease}}39,121
|{{increase}}49,797
|{{decrease}}48,011
|{{decrease}}41,448
|{{decrease}}39,566
|-
!Paper & board
|610
|{{increase}}669
|{{increase}}731
|{{decrease}}704
|{{increase}}707
|{{increase}}730
|{{increase}}825
|{{decrease}}792
|{{decrease}}787
|-
!Caustic soda
|225
|{{decrease}}224
|{{increase}}270
|{{decrease}}247
|{{increase}}342
|{{increase}}394
|{{increase}}405
|{{increase}}476
|{{increase}}497
|-
!Hydrogen chloride
|172
|{{increase}}177
|{{increase}}251
|{{increase}}425
|{{decrease}}361
|{{increase}}417
|{{increase}}510
|{{increase}}525
|{{decrease}}507
|-
!Sulphuric acid
|75
|{{decrease}}56
|{{decrease}}49
|{{steady}}49
|{{decrease}}40
|{{increase}}72
|{{increase}}111
|{{decrease}}71
|{{decrease}}64
|-
!Vegetable ghee
|1,241
|{{increase}}1,280
|{{increase}}1,347
|{{increase}}1,392
|{{increase}}1,454
|{{increase}}1,455
|{{decrease}}1,393
|{{increase}}1,554
|{{decrease}}1,493
|-
!Cotton cloth
|Million meters
|1,039
|{{increase}}1,043
|{{increase}}1,044
|{{increase}}1,046
|{{decrease}}935
|{{increase}}1,048
|{{increase}}1,051
|{{decrease}}921
|{{decrease}}871
|-
!Cigarettes
|Billion
|54
|{{decrease}}34
|{{increase}}59
|{{increase}}61
|{{decrease}}46
|{{increase}}52
|{{increase}}60
|{{decrease}}43
|{{decrease}}33
|-
!Nitrogenous fertilizers
| rowspan="2" |NT (000)
|3,018
|{{increase}}3,063
|{{decrease}}2,758
|{{increase}}2,990
|{{increase}}3,139
|{{increase}}3,324
|{{increase}}3,391
|{{decrease}}3,163
|{{increase}}3,483
|-
!Phosphatic fertilizers
|664
|{{increase}}683
|{{decrease}}619
|{{increase}}633
|{{decrease}}631
|{{increase}}748
|{{increase}}804
|{{decrease}}616
|{{increase}}756
|-
!Cycle tyres & tubes
| rowspan="9" |Numbers (000)
|11,490
|{{increase}}11,507
|{{decrease}}11,470
|{{increase}}14,491
|{{decrease}}13,496
|{{decrease}}10,314
|{{increase}}10,876
|{{decrease}}10,702
|{{increase}}10,943
|-
!Motor tyres & tubes
|34,202
|{{increase}}34,345
|{{increase}}35,057
|{{increase}}36,321
|{{decrease}}35,678
|{{decrease}}31,906
|{{decrease}}30,296
|{{increase}}30,515
|{{increase}}31,107
|-
!Motorcycles
|2,071
|{{increase}}2,501
|{{increase}}2,825
|{{decrease}}2,460
|{{decrease}}1,813
|{{increase}}2,476
|{{decrease}}2,190
|{{decrease}}1,289
|{{decrease}}1,235
|-
!Bicycles
|199
|{{increase}}200
|{{steady}}200
|{{decrease}}174
|{{decrease}}141
|{{decrease}}79
|{{increase}}141
|{{increase}}146
|{{increase}}159
|-
!Electric transformers
|33
|{{increase}}37
|{{increase}}47
|{{decrease}}31
|{{decrease}}23
|{{increase}}29
|{{increase}}35
|{{decrease}}32
|{{decrease}}22
|-
!Refrigerators
|1,477
|{{increase}}1,834
|{{decrease}}1,348
|{{decrease}}1,084
|{{decrease}}716
|{{increase}}1,351
|{{increase}}1,389
|{{decrease}}1,008
|{{decrease}}818
|-
!Air conditioners
|388
|{{increase}}471
|{{decrease}}451
|{{increase}}518
|{{decrease}}216
|{{increase}}508
|{{increase}}540
|{{decrease}}347
|{{decrease}}224
|-
!Electric fans
|2,033
|{{increase}}2,523
|{{increase}}2,596
|{{decrease}}2,591
|{{decrease}}2,124
|{{increase}}2,499
|{{increase}}2,600
|{{decrease}}2,182
|{{increase}}2,283
|-
!Electric meters
|1,310
|{{increase}}1,923
|{{decrease}}1,715
|{{decrease}}1,550
|{{decrease}}1,039
|{{increase}}1,419
|{{increase}}2,030
|{{increase}}2,038
|{{increase}}2,117
|-
!Motor spirits/petrol
| rowspan="3" |Million liters
|2,216
|{{increase}}2,518
|{{increase}}2,988
|{{increase}}3,085
|{{decrease}}2,684
|{{increase}}3,424
|{{decrease}}3,392
|{{decrease}}3,051
|{{increase}}3,294
|-
!High speed diesel
|5,236
|{{increase}}5,467
|{{increase}}6,283
|{{decrease}}5,665
|{{decrease}}4,529
|{{increase}}5,612
|{{increase}}5,615
|{{decrease}}4,655
|{{increase}}5,340
|-
!Furnace oil
|3,080
|{{increase}}3,215
|{{increase}}3,478
|{{decrease}}3,063
|{{decrease}}2,370
|{{increase}}2,717
|{{decrease}}2,567
|{{decrease}}2,191
|{{increase}}2,633
|-
!Jeeps & cars
|Numbers
|180,717
|{{increase}}193,996
|{{increase}}231,738
|{{decrease}}218,845
|{{decrease}}106,764
|{{increase}}182,389
|{{increase}}271,923
|{{decrease}}131,978
|{{decrease}}100,221
|-
!Tractors
|Numbers
|34,914
|{{increase}}53,975
|{{increase}}71,894
|{{decrease}}49,902
|{{decrease}}32,608
|{{increase}}50,700
|{{increase}}58,922
|{{decrease}}31,752
|{{increase}}46,275
|-
!Trucks & buses
|Numbers
|8,331
|{{increase}}10,548
|{{increase}}13,425
|{{decrease}}9,684
|{{decrease}}4,848
|{{increase}}5,977
|{{increase}}7,934
|{{decrease}}4,839
|{{decrease}}3,240
|}

Pakistan's largest corporations are primarily engaged in utilities such as oil, gas, electricity, automobile, cement, food, chemicals, fertilizer, civil aviation, textile, and telecommunication.

Their assets, sales, and profit/loss for the year 2023 are listed below:<ref name=":10">{{Cite web |title=Financial Statements Analysis of Companies (Non-Financial) Listed at Pakistan Stock Exchange 2023 |url=https://www.sbp.org.pk/reports/annual/FSANFC/2023/PDF/Complete.pdf |access-date=2024-09-14 |website=sbp.org.pk}}</ref>

{| class="wikitable sortable" style="text-align:right;"
|+Amounts are in billion PKR.
|- style="background:#EFEFEF;"
! style="text-align:center;" | Name
!Total assets
!Sales
! style="text-align:center;" | Profit / (loss) after tax
|-
| style="text-align:left;" | [[Oil and Gas Development Company|Oil and Gas Development Co. Ltd.]]
| style="text-align:center;" | 1,424
| style="text-align:center;" | 414
| style="text-align:center;" | 224.6
|-
| style="text-align:left;" | [[Sui Northern Gas Pipelines Limited]]
| style="text-align:center;" | 1,268
| style="text-align:center;" |  1,294
| style="text-align:center;" |  10.4
|-
| style="text-align:left;" | [[Pakistan State Oil|Pakistan State Oil Co. Ltd.]]
| style="text-align:center;" | 983
| style="text-align:center;" | 3,391
| style="text-align:center;" |  5.7
|-
| style="text-align:left;" | [[K-Electric]]
|style="text-align:center;" | 1,025
|style="text-align:center;" | 519
|style="text-align:center;" | (30.9)
|-
| style="text-align:left;" | [[Sui Southern Gas Company|Sui Southern Gas Co. Ltd]]
| style="text-align:center;" | 798
| style="text-align:center;" | 376
| style="text-align:center;" | (11.4)
|-
| style="text-align:left;" | [[Pakistan Petroleum|Pakistan Petroleum Ltd.]]
| style="text-align:center;" | 790
| style="text-align:center;" | 286
| style="text-align:center;" | 97.9
|-
| style="text-align:left;" | [[Lucky Cement|Lucky Cement Ltd.]]
|style="text-align:center;" | 608
|style="text-align:center;" |  385
| style="text-align:center;" | 49.4
|-
| style="text-align:left;" | [[Hub Power Company|The Hub Power Co. Ltd.]]
| style="text-align:center;" | 406
| style="text-align:center;" | 114
| style="text-align:center;" | 62.0
|-
| style="text-align:left;" | [[Attock Refinery Limited|Attock Refinery Ltd.]]
| style="text-align:center;" | 193
| style="text-align:center;" | 369
| style="text-align:center;" | 28.0
|-
| style="text-align:left;" |[[Fatima Fertilizer Company|Fatima Fertilizer Co. Ltd.]]
| style="text-align:center;" |234
| style="text-align:center;" |235
| style="text-align:center;" |23.0
|-
| style="text-align:left;" | [[Engro Fertilizers|Engro Fertilizers Ltd.]]
| style="text-align:center;" | 161
| style="text-align:center;" | 224
| style="text-align:center;" | 26.2
|-
| style="text-align:left;" | [[Fauji Fertilizer Company|Fauji Fertilizer Co. Ltd.]]
| style="text-align:center;" | 327
| style="text-align:center;" | 181
| style="text-align:center;" | 19.7
|-
| style="text-align:left;" | [[Attock Petroleum Limited|Attock Petroleum Ltd.]]
| style="text-align:center;" | 108
| style="text-align:center;" | 474
| style="text-align:center;" | 12.5
|-
| style="text-align:left;" | [[Toyota Indus|Indus Motor Co. Ltd.]]
| style="text-align:center;" | 123
| style="text-align:center;" | 178
| style="text-align:center;" | 9.7
|-
| style="text-align:left;" | [[Shell Pakistan|Shell Pakistan Ltd.]]
| style="text-align:center;" | 106
| style="text-align:center;" |  432
| style="text-align:center;" | 5.8
|-
| style="text-align:left;" | [[Fauji Fertilizer Bin Qasim|Fauji Fertilizer Bin Qasim Ltd.]]
| style="text-align:center;" | 146
| style="text-align:center;" | 193
| style="text-align:center;" | 4.4
|-
| style="text-align:left;" | [[National Refinery Limited|National Refinery Ltd.]]
| style="text-align:center;" | 112
| style="text-align:center;" | 299
| style="text-align:center;" | (4.5)
|-
| style="text-align:left;" | [[Nestlé Pakistan|Nestle Pakistan Ltd.]]
| style="text-align:center;" | 98
| style="text-align:center;" | 201
| style="text-align:center;" | 16.5
|-
| style="text-align:left;" | [[Cnergyico|Cnergyico PK Limited]]
| style="text-align:center;" | 365
| style="text-align:center;" | 194
| style="text-align:center;" |  (13.6)
|-
| style="text-align:left;" | [[PTCL|Pakistan Telecommunication Co. Ltd.]]
| style="text-align:center;" | 644
| style="text-align:center;" | 188
| style="text-align:center;" | (15.5)
|-
| style="text-align:left;" | [[Pakistan International Airlines|Pakistan International Airlines Corporation Ltd.]]
| style="text-align:center;" | 321
| style="text-align:center;" | 179
| style="text-align:center;" | (17.5)
|-
| style="text-align:left;" | [[Nishat Mills|Nishat Mills Ltd.]]
| style="text-align:center;" | 170
| style="text-align:center;" | 142
| style="text-align:center;" | 12.2
|-
| style="text-align:left;" | [[Fauji Cement|Fauji Cement Co. Ltd.]]
| style="text-align:center;" | 139
| style="text-align:center;" | 90
| style="text-align:center;" | 29.5
|-
| style="text-align:left;" | [[Gul Ahmed Textile Mills Limited|Gul Ahmed Textile Mills Ltd.]]
| style="text-align:center;" | 134
| style="text-align:center;" | 139
| style="text-align:center;" | 4.9
|-
| style="text-align:left;" | [[Interloop Limited|INTERLOOP (Pvt) Ltd.]]
| style="text-align:center;" | 125
| style="text-align:center;" | 121
| style="text-align:center;" | 21.7
|-
| style="text-align:left;" | [[Pakistan Tobacco Company|Pakistan Tobacco Co. Ltd.]]
| style="text-align:center;" | 110
| style="text-align:center;" | 110
| style="text-align:center;" | 29.0
|-
| style="text-align:left;" | [[Bestway Cement|Bestway Cement Ltd]].
| style="text-align:center;" | 175
| style="text-align:center;" | 88
| style="text-align:center;" | 11.9
|-
| style="text-align:left;" | [[Pakistan Refinery Limited|Pakistan Refinery Ltd.]]
| style="text-align:center;" | 105
| style="text-align:center;" | 262
| style="text-align:center;" | 1.8
|}

===== Cement industry =====
In 1947, Pakistan inherited four cement plants with a total capacity of 0.5 million tons. Some expansion occurred in 1956–66 but couldn't keep pace with economic development. The country resorted to cement imports in 1976–77, continuing until 1994–95. The cement sector, comprising 27 plants, contributes over Rs 30 billion to the national exchequer in taxes. By 2013, Pakistan's [[cement]] industry grew rapidly, driven by demand from [[Afghanistan]] and countries boosting the real estate sector. In April 2020, the government introduced an incentive package for the construction industry, including an amnesty scheme, tax exemptions, and a Rs 36 billion subsidy for [[Naya Pakistan Housing & Development Authority|Naya Pakistan Housing Scheme]]. Additionally, banks were directed to increase construction sector loans to 5 percent of their total loan book, and [[Excise|FED]] reduction on cement from Rs 2/kg to Rs 1.5/kg provided further impetus to the industry.<ref>{{cite web|title=Pakistan Economic Survey 2020–21|url=https://www.finance.gov.pk/survey/chapters_21/03-Manufacturing.pdf|url-status=live|access-date=2 September 2021|archive-url=https://web.archive.org/web/20210610182425/https://www.finance.gov.pk/survey/chapters_21/03-Manufacturing.pdf |archive-date=10 June 2021 }}</ref>

{| class="wikitable"
|+Cement production capacity & dispatches (million tonnes)<ref>{{cite web |title=Pakistan Economic Survey 2022–23 |url=https://www.finance.gov.pk/survey/chapters_23/03_Manufacturing_and_Mining.pdf |access-date=31 July 2023 |website=finance.gov.pk}}</ref><ref>{{Cite web |title=Cement dispatches declined |url=https://www.apcma.com/new-updates/2023/CementPR-June2023.pdf |access-date=29 August 2023}}</ref>
!Indicators
!2008
!2009
!2010
!2011
!2012
!2013
!2014
!2015
!2016
!2017
!2018
!2019
!2020
!2021
!2022
!2023
|-
|Production capacity
|37.68
|42.28
|45.34
|42.37
|44.64
|44.64
|44.64
|45.62
|45.62
|46.39
|48.66
|55.90
|63.53
|69.14
|69.29
|83.18
|-
|Local dispatches
|22.58
|20.33
|23.57
|22.00
|23.95
|25.06
|26.15
|28.20
|33.00
|35.65
|41.15
|40.34
|39.97
|48.12
|47.64
|40.01
|-
|Exports
|7.72
|10.98
|10.65
|9.43
|8.57
|8.37
|8.14
|7.20
|5.87
|4.66
|4.75
|6.54
|7.85
|9.31
|5.26
|4.57
|-
|Total dispatches
|30.30
|31.31
|34.22
|31.43
|32.52
|33.43
|34.28
|35.40
|38.87
|40.32
|45.89
|46.88
|47.81
|57.43
|52.89
|44.58
|}

===== Fertilizer industry =====
There are nine urea manufacturing plants, one DAP, three NP, four SSP, two CAN, one SOP, and two plants of blended NPKs with a total production capacity of 9,172 thousand tonnes per annum in 2021. Urea is the main fertilizer, holding a 70 percent share in total production. The installed production capacity of 6,307 thousand tonnes per annum is sufficient to meet local demand, subject to the availability of uninterrupted gas and RLNG supply.

{| class="wikitable"
|+'''Fertilizer offtake by nutrients ('000 tonnes)'''<ref>{{cite web |title=Historical Data on Fertilizer Offtake by Nutrients |url=http://www.nfdc.gov.pk/Web-Page%20Updating/Historic%20Offtake.htm |archive-url= |archive-date= |access-date=2024-07-31 |website=National Fertilizer Development Center}}</ref>
!Nutrients
!2008
!2009
!2010
!2011
!2012
!2013
!2014
!2015
!2016
!2017
!2018
!2019
!2020
!2021
!2022
|-
|Nitrogen
|2925
|3034
|3476
|3133
|3207
|2853
|3185
|3308
|2672
|3730
|3435
|3408
|3415
|3711
|3838
|-
|Phosphorus
|630
|651
|860
|767
|633
|747
|881
|975
|1007
|1269
|1279
|1153
|1084
|1228
|1093
|-
|Potassium
|27
|25
|24
|32
|21
|21
|24
|33
|20
|41
|50
|53
|50
|69
|71
|}

===== Defence industry =====
{{Main|Defence industry of Pakistan}}
[[File:Al-Khalid IDEAS 2012.jpg|thumb|[[Heavy Industries Taxila|HIT]]-built [[Al-Khalid tank]] on display.]]

The defence industry of Pakistan, under the [[Ministry of Defence Production]], was established in September 1951 to promote and coordinate the array of military production facilities that have emerged since independence. It is actively engaged in numerous joint production projects, such as the [[Al-Khalid tank|Al Khalid 2]] tank, advanced trainer aircraft, combat aircraft, artillery systems like MRLS, combat and surveillance drones like GIDS Shahpar-1 and Shahpar-2, battle management and surveillance radars, electronic warfare systems, navy ships, and submarines.

Pakistan manufactures and sells weapons to over 40 countries, including European customers, generating $620 million annually. The country's sophisticated arms imports increased by 119 percent between 2004–2008 and 2009–13, with China providing 54 percent and the USA 27 percent of Pakistan's imports.

===== Textiles industry =====
{{Main|Textile industry in Pakistan}}
Most of the textile industry is concentrated in Punjab. However, before 1990, the industry was predominantly located in Karachi.

Presently, the textile industry comprises two main segments: a highly organized large-scale sector and a considerably fragmented cottage/small-scale sector. The organized sector mainly includes integrated Textile Mills, housing numerous spinning units and a limited number of shuttle-less [[loom]] units. Conversely, the unorganized sector encompasses downstream industries like [[Weaving]], Finishing, Garment, Towels, and [[Hosiery]], all of which possess significant export potential. Within this sector, certain enterprises have expanded to an international scale and exhibit progressive business philosophies.

[[File:Karachi - Pakistan-market.jpg|thumb|Sunday textile market on the sidewalks of [[Karachi]], Pakistan]]

As of June 2021, the Pakistani textile industry comprised 517 textile units, including 40 composite units and 477 spinning units. This landscape also included 28,500 shuttle-less looms and 375,000 conventional looms. The growth of the spinning sector has been fueled by export demands and cotton production, with subsequent growth observed in the weaving and processing sector. Notably, independent [[Air-jet loom|air-jet weaving]] units have emerged, both as standalone entities and in conjunction with spinning or processing units.

A notable trend is the ongoing backward integration of some clothing units, while spinning units are actively developing weaving, finishing, and assembly capabilities to create a comprehensive supply chain. This symbiotic relationship between the textile and clothing sectors is leading to horizontal and vertical integration, often managed by the same entities or through business collaborations.<ref>{{Cite web |title=Performance of Textile Industry |url=https://www.tco.com.pk/documents/7098418c64.pdf |access-date=31 August 2023 |website=tco.com.pk}}</ref>

This sector contributes nearly one-fourth of industrial value-added and provides employment to about 40 percent of the industrial labor force. Excluding seasonal and cyclical fluctuations, textile products have maintained an average share of about 60 percent in national exports.{{citation needed|date=March 2025}}

===== Automobile industry =====
{{Main|Automotive industry in Pakistan}}
[[File:Karachi-Shahrah-e-Faisal boulevard.jpg|thumb|Cars on [[Shahrah-e-Faisal]] in Karachi]]

The auto sector constituted about 7 percent of LSM in 2021, contributing significantly to the country's industrial output.<ref>{{cite web|title=The Wait Is Over|url=https://dnd.com.pk/pakistans-auto-policy-2021-2026-is-here/249336|url-status=live|access-date=2 September 2021|website=DND|date=7 July 2021|archive-url=https://web.archive.org/web/20210707104938/https://dnd.com.pk/pakistans-auto-policy-2021-2026-is-here/249336|archive-date=7 July 2021}}</ref> Given government support and the removal of obstacles, the industrial expansion is expected to yield positive results soon. Many new investors have joined with commercial production, while existing players have already made substantial investments, with more in the pipeline. Among the automakers yet to start production, [[Proton Holdings|Proton]], [[MG Motor|MG]], and [[Volkswagen]] are poised to make a significant impact in the local passenger vehicle market. Meanwhile, [[Kia|KIA]], [[Hyundai Motor Company|Hyundai]], [[Changan Automobile|Changan]], and [[DFSK Motor|Prince DFSK]] have already commenced productions in Pakistan.<ref>{{cite web|title=Here's The Status of Each New Car Company in Pakistan|url=https://propakistani.pk/2021/03/08/heres-the-status-of-each-new-car-company-in-pakistan/|url-status=live|access-date=5 September 2021|website=propakistani.pk|date=8 March 2021 |archive-url=https://web.archive.org/web/20210309005156/https://propakistani.pk/2021/03/08/heres-the-status-of-each-new-car-company-in-pakistan/ |archive-date=9 March 2021 }}</ref>

{| class="wikitable"
|+Production & sale of vehicles<ref>{{cite web |title=Production (P) & Sale (S) of Vehicles |url=https://pama.org.pk/wp-content/uploads/2024/09/Historical-Data-1995-2024.pdf |access-date=2024-09-14 |website=pama.org.pk}}</ref>
!Type
!
!2006
!2011
!2016
!2017
!2018
!2019
!2020
!2021
!2022
!2023
!2024
|-
| rowspan="2" |[[Car]]
!P
|170,487
|133,972
|179,944
|188,936
|217,774
|209,255
|94,325
|151,794
|226,433
|101,984
|79,573
|-
!S
|165,965
|127,944
|181,145
|185,781
|216,786
|207,630
|96,455
|151,182
|234,180
|96,811
|81,577
|-
| rowspan="2" |[[Truck]]
!P
|4,518
|2,901
|5,666
|7,712
|9,326
|6,035
|2,945
|3,808
|5,659
|3,074
|2,204
|-
!S
|4,273
|2,942
|5,550
|7,499
|9,331
|5,828
|3,088
|3,695
|5,802
|3,182
|2,187
|-
| rowspan="2" |[[Bus]]
!P
|825
|490
|1,070
|1,118
|803
|913
|532
|570
|661
|701
|419
|-
!S
|927
|515
|1,017
|1,130
|762
|935
|559
|652
|696
|654
|454
|-
| rowspan="2" |[[Jeep]] & pick-up
!P
|21,624
|20,025
|36,609
|27,795
|42,778
|31,978
|15,633
|31,073
|44,421
|31,333
|21,084
|-
!S
|21,471
|18,553
|36,534
|27,338
|42,006
|33,016
|15,507
|30,215
|45,087
|30,067
|22,250
|-
| rowspan="2" |[[Tractor|Farm tractor]]
!P
|48,887
|70,770
|34,914
|53,975
|71,894
|49,902
|32,608
|50,751
|58,880
|31,726
|45,529
|-
!S
|48,802
|69,203
|33,986
|54,992
|70,887
|50,405
|32,727
|50,920
|58,947
|30,942
|45,484
|-
| rowspan="2" |[[Motorcycle|2/3 wheelers]]
!P
|520,124
|838,665
|1,362,096
|1,632,965
|1,928,757
|1,782,605
|1,370,417
|1,902,415
|1,826,467
|1,185,532
|1,150,090
|-
!S
|516,640
|835,455
|1,358,643
|1,630,735
|1,931,340
|1,781,959
|1,370,005
|1,903,932
|1,821,885
|1,186,969
|1,150,112
|}

Note: These figures do not include the production/sale of companies which are not members of the [[Pakistan Automotive Manufacturers Association|Pakistan Automotive Manufacturers Association (PAMA)]].

After the entry of new models and brands by new entrants and due to the significantly low benchmark interest rate of 7%, consumer financing hit an all-time high in 2021. This trend started when a new Automotive Development Policy (2016–2021) was first approved by the ECC in its meeting held on 18 March 2016.

Such growth in demand for car financing was last seen during President [[Pervez Musharraf]]'s regime (2001–2008) when banks, having ample liquidity, lent a significant amount for cars without checking borrowers' capabilities to repay the debt. Later, the car financing bubble burst when a large number of people defaulted on paying off the car financing.

{| class="wikitable"
|+Outstanding loans of consumer financing for automobiles (billion PKR)<ref name=":6" />
!Jun 2006
!Jun 2007
!Jun 2010
!Jun 2015
!Jun 2016
!Jun 2017
!Jun 2018
!Jun 2019
!Jun 2020
!Jun 2021
!Jun 2022
!Jun 2023
!Jun 2024
|-
|97.78
|105.44
|64.20
|85.12
|111.96
|154.25
|193.60
|215.46
|211.11
|308.10
|367.85
|293.728
|230.501
|}