Sir, there is already excess capacity available in the region, with manufacturing plants already up and running. Pakistan missed this boat a few decades ago. Manufacturing in Pakistan is not cheap, or even competitive with other countries for products like cars. The only advantage Pakistan has is abundant cheap unskilled labor, but that is not really relevant to value-added hi-tech manufacturing since labor is only a small percentage of the total cost of the product.
Yes, there is a solution, but the government is not able to implement it it: open up the local market to international competition. That will indeed benefit the consumers, but at cost of the local manufacturers.
Not just the car market, the same dilemma applies to many other sectors. Protecting the local industry from international competition will make for poor choices at high prices. Opening up the markets will give good products to the consumers, but at cost of destroying the local industry. Trying to muddle through as the Pakistani government tries to do does not work, as we can see.
It is easy to claim that Pakistani products can compete in the international market, but that is almost always not true, truth be told bluntly. Decades of crony protectionism have made sure of that, Sir, and there is are no indications that this is about to change, and certainly not due to this recently announced auto policy.