For example, 10 lacs (1 million) INR roughly converts to around 13,350 USD. A lot of cheap internationally qualified vehicles can come in this price range, in case of imports. However, in case of local manufactured, India is probably able to sell even cheaper vehicles in international standards of quality because of tax breaks for MANUFACTURING local vehicles with locally produced raw materials. This is why they are so cheap.

On the other side, 10 lacs (1 million) PKR converts to only 5700 USD. That is a huge difference, almost less than half of what it’s worth against the INR. There are hardly any international standard vehicles available in that price. Even a Honda Super Cub C125 is worth 3,750 USD (650,000 PKR).
Every car in Pakistan is just locally assembled, with most if not all parts imported from outside. That means it’s just an imported product with the labor costs simply cut slightly less. To get the cheapest international standard car in Pakistan would mean spending 17 Lacs PKR (10,000 USD).

Another important note to keep is the consumer’s buying power, which is almost every time directly related to their salary. In Pakistan an average class salary would be around 35,000 to 50,000 PKR (200 USD – 300 USD), while a great salary would be around 100,000 PKR (580 USD). That seems awfully low considering the value of PKR, but sadly that’s how it is. To save up to buy an absolutely base model bone dry cheap commuter car, you would need to save 20 Lacs (11,500 USD) with an average monthly salary of 100,000 PKR (580 USD), assuming you’re saving all of that money and not spending a single rupee. With simple math, you would need at least two years of non stop work hours and not a single rupee spent to save enough for a Suzuki Alto VX. Now add in realistic measures (like actually spending some of the money) and that time period becomes longer and longer.

The problem in Pakistan isn’t cheap cars, the problem in Pakistan is simply bad currency value, very low average pay and a car industry that is 90% imports.