your observation is illogical ..infact rather confusing ...Great decision. We need to take a pause and rethink whole auto industry.
Simple point to start is to copy and enforce US auto industry quality & emission standards in Pakistan.
Ban used car import. Allow new car import only. Make sure that it is paid from an overseas account and no foreign exchange leaves Pakistan.
Introduce equal tariff & taxes whether local or imported new car. This will create open market competition.