There has been many attempts by Pakistanis. The image above was the last failed attempt. Failed at securing finance, that's the weakest point of us, Pakistanis.
"Pakistanis can make almost all parts of a car, except carburetor." IIRC, that's what chairman of Pakistan's Car Parts Manufacturer organization said in a televised interview.
175 000 Indian rupees = 301 365.079 Pakistan rupees
and if price of Mehran is:
547,000 Pakistani rupees
then probably Indian Maruti (Mehran) is closer to Pakistani price. Given that in that 547,000 there is at least roughly 100,000 tax for government (I heard the figure of tax is closer to that on Mehran). I don't think Pakistani price of Mehran is that bad. However, just like new attempts by Tata and others, I also think that a local manufactured car can be at lower price compare to their Maruti (our Mehran). Give or take, we probably can make a car around 300,000, maybe a little lower. However, thanks to government, after tax, it will be again around 400,000 Pakistani Rupees. Pakistani government think cars as luxury, not necessity.
Moreover, the problem here is in the taxation system of Pakistan. Pakistani government, especially FBR, are one of the most incompetent departments of Pakistan (Police being the top). FBR rely solely on indirect taxes (GST, RGST, CVT, Retail Tax, Sales Tax, etc. etc.) rather than on direct tax (Income Tax etc.). Why? Because indirect taxes are easy, just put tax on everybody and do nothing. Whereas, in direct tax, only those people give tax who actually earn but for that FBR will need to actually work and calculate how much income a person had and how much tax he/she need to paid. That's why we have such high price of cars, bread, airline ticket, and everything else.