Most cars I saw on the roads in Karachi were different from the cars I've seen here. Are they specifically made for Pakistan?
You’re talking about those rickshaw/carts like cars, right?
Yes you have see where they are originally coming from. Most are coming from Korea, China. Some coming from Japan They are assessed based on demographics, culture, commutes, traffic congestion etc. A lot statistics are calculated. Thats why as you said they are mostly kept as compact due to high demand as well as consumption.
While as you said in KSA and even in west, these compact cars will not survive due to many reasons.
Also if you visit Northern parts of Pak which is more mountaeous, you wont see these compact cars there. Its more bigger cars and trucks. So in the end it depends upon requirement for a certain area.
I can also relate to this cuz in 2017 when i went there and my very young niece/nephew were with me visiting there for the first time, they were like the same. why are cars so small here. lol. In answer I just showed them the traffic jams in khi 
pakistan need to make its own car manufacturer. Our engineers are more than capable of that but they leave the country to seek opportunity elsewhere
We have example of talented scientist Agha Waqar Khan who demonstrated worlds first water fuelled car. Pakistan need to fund this man
yeah even the small sized cass like corollas and civids are designed differently for the pakistani market, they tend to be even smaller but have more featurers and those cars are actually considered “big cars” in pakistan lmaoo.A basic sedan like a camry or an accord would be considered a luxury car over there where as the luxury labels of those automakers such as lexus and acuras are almost nonexistent over there. May the new found Oil wealth might change the lives of the people there, amen.
Not all but yes they are different.. KSA is an open market for cars manufacturing companies and buyers don’t have to pay like upto 200% taxes on any two, four or more wheels vehicles.. Whereas KSA is a rich country whose citizens can afford cars with massive engines which consumes more fuel.. and that goes the other way for a poor country like Pakistan.. people here needs economical vehicles with alot smaller engines.. they prefers cheap and economical rides than luxurious ones.. we usually have 800cc to 1300cc engines other than 660cc to 1800cc.. whereas KSA’s markets are full of fire breathing 2400-6000cc massive cars.. and we have 1 in 1000 cars like that..
Economy matters..
There used to be a Pakistani made potohar jeep I was very impressed with. I wanted to buy it because it was within a very reasonable price cap for its look (I’m in love with small jeeps). But it was discontinued & replaced by some foreign made lousy jeep but much higher price as compared with potohar.
That is our national car.. 
P.S: that’s the most selling 800cc car.. Mehran by Suzuki..
No, most cars in Pakistan are not specifically made for the Pakistani market. However, a few local manufacturers produce cars specifically for Pakistan, such as Pak-Suzuki and Dewan Farooq Motors. The vast majority of cars on Pakistani roads are imported, but many are used cars imported from Japan. Also, I found a Toyota supra mk3 for sale that is now in Pakistan for a great price. I want to export it to the USA to resell. What do you think about such an idea? I hope to make a pretty nice amount of money.
Oh yhh man