Editing Economy of Pakistan (section)

===== 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
|}