No, its not.
Underpower is a relative term, not an absolute one.
Like there is no figure or measurement accepted internationally for a car to be declared underpowered.
I have driven 1.3 Gli AT and found it to be reasonable. Just tell me one place in Pakistan where a 1.8L Corolla can go but 1.3L cannot.
And if you compare it with other options we have here in 1.3L auto, then its the best.
City 1.3L auto is 6 years old car now, has a very hard suspension, not as spacious as the Corolla. The car needs high octane to run otherwise start knocking on our regular petrol, whereas Corolla's old 2NZ-FE is a robust engine well suited to our Pakistan conditions.
And if you compare the fuel averages of 1.3L Corolla auto and 1.3L City auto, then Corolla is giving better average.