Pakistan’s car ownership rate has declined to just 11 vehicles per 1,000 residents, underscoring the challenges facing the country’s automotive industry and the limited affordability of private vehicles for many consumers.
Industry stakeholders say the low ownership rate reflects a combination of economic pressures, rising vehicle prices, high financing costs, and policy uncertainty. To address these issues, they are urging the government to introduce a comprehensive 10-year automotive policy that provides long-term stability and encourages investment in the sector.
Automakers believe a predictable policy framework would help attract local and foreign investment, expand manufacturing capacity, and strengthen Pakistan’s automotive supply chain. Stable policies could also encourage companies to introduce new models, invest in advanced technologies, and increase the localization of vehicle production.
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Industry representatives argue that consistent regulations would improve consumer confidence, revive vehicle demand, and make long-term business planning easier for manufacturers and investors. They also stress that greater policy certainty could support job creation, increase exports, and enhance the competitiveness of Pakistan’s auto sector.
As the country works to strengthen its industrial base, experts believe that long-term policy reforms will be essential for making vehicles more accessible and affordable while ensuring sustainable growth in the automotive industry. Stakeholders remain hopeful that a stable and investor-friendly environment will help reverse the decline in car ownership and support the sector’s future development.
