The government is going to introduce a new car financing scheme with a lower interest rate of 5 percent to 6 percent to facilitate people who are unable to buy cars after the major price hikes during the last few years.
An official at the Ministry of Industries and Production revealed that the government is interested in facilitating the buyers of small cars of 850cc to 1000cc with a reduced interest rate to facilitate maximum buyers. However, the financing facility will also be extended to cars of above 1000cc.
“The rate being proposed for small cars would be around 5 percent while 6 percent is being suggested for cars of more than 1000 cc,” he said.
He also explained that “the facility could boost sales in the auto industry which ultimately create business and employment opportunities,” and that the facility is currently being discussed with the stakeholders.
During a recent meeting on the proposed new auto policy, the Federal Minister for Industries and Production, Makhdum Khusro Bakhtyar, announced that the aims for the introduction of a new policy are to provide affordable small cars (850cc-1000cc), promote localization in domestically assembled cars, produce an exportable surplus of auto-parts of 2-3 wheelers, and increase the competition in the local market so that people in Pakistan may enjoy better technology at affordable prices.