well I guess car pricing is justifiable after I checked out other prices in South East Asian countries.
first up "City"
now city (1.5L) in Malaysia starts from 86,000 Ringgit
which is equal to PKR 2.5 million 
"Civic" (1.8L)
starts with 116,022 Ringgit
which equals to 3.4 million 
now the reason why they have such prices are due to equipment they give in each base model like parking sensors, SRS airbags, paddle shift, Brake Assist, EBD, Vehicle stability assist (civic), cruise control (civic) etc. in both City & Civic.
so guys 1.5-1.7 million for a City is not much of a big deal nor 1.8-2.1 million for a civic. our economy is in such a deep trouble that we are suffering from it.
if they give a City in 1.5L with all the options it will surely shoot above 2 million & same is the case with civic.
so be happy with what they are giving you
only thing I hate is the local car quality