Government to Lower the Interest Rate for Car Finance

The government is going to introduce a new car financing scheme with a lower interest rate of 5 to 6 per cent to facilitate customers who are unable to buy a car after major price hikes during the past few years.

According to an official at the ministry of Industries and Production, the government is interested in facilitating the customers of small cars of 850 cc to 1000 cc with reduced interest rate to facilitate maximum buyers. However, the financing facility would also be extended to cars of above 1000 cc. “The rate being proposed for small cars would be around 5 per cent while 6 per cent is being suggested for cars of more than 1000 cc,” the official said.

“The facility could boost sales in the auto industry which ultimately create business and employment opportunities,” he said, adding that the facility was currently being discussed with stakeholders.

During a recently held meeting on proposed new auto policy, it was informed by Federal Minister for Industries and Production, Makhdum Khusro Bakhtyar, that the aim to introduce a new policy is to provide affordable small cars i.e. 850 cc-1000 cc, promote localisation in domestically assembled cars, produce exportable surplus of auto-parts of 2-3 wheelers and increase the competition in the local market so that people in Pakistan could enjoy better technology at affordable prices.

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