Industry leaders and policymakers convened on Tuesday to discuss Pakistan’s transition to electric mobility, emphasizing that the New Electric Vehicle Policy (NEVP) 2025–30, though forward-looking, requires a phased and practical approach to succeed.
The dialogue, “Shifting Gears: Launch of Automotive Study and Stakeholders Dialogue”, was organised by the Indus Consortium in Karachi. Participants agreed that sustainable progress toward green mobility depends on infrastructure readiness, financial accessibility, and energy diversification.
Key challenges identified
- Limited charging network
Pakistan currently operates only 35 public EV charging stations, far fewer than regional counterparts such as India and Nepal. India, for instance, has crossed 12,000 stations, while Nepal’s EV-friendly policies have led to rapid growth in public chargers across major cities. The contrast underscores how Pakistan’s transition is lagging behind regional momentum.
- Energy mix concerns
With nearly 60% of power generation still derived from fossil fuels, experts cautioned that electrifying vehicles without greening the grid would merely shift carbon emissions rather than reduce them.
- High upfront costs
The elevated purchase price of EVs remains a deterrent for both consumers and fleet operators. With fewer than 10,000 registered electric vehicles, mainly two- and three-wheelers, the adoption of four-wheel EVs remains minimal, reflecting the continued limitation of affordability in constraining market growth.
Study Highlights Barriers and Emerging Opportunities
A research report titled “Green Transition — Barriers and Opportunities for the Automotive Industry in Pakistan” was launched during the event.
Jointly developed by the Indus Consortium and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the study examined both structural barriers and potential areas for growth in the automotive sector’s green transformation.
The report identified financing gaps, limited localization, and a lack of long-term policy consistency as core issues hindering progress. Experts also warned that unless local battery and component manufacturing gains traction, Pakistan may simply replace fuel imports with battery imports — trading one dependency for another.
Industry Voices Call for a Balanced Transition
Ali Asghar Jamali, CEO of Indus Motor Company (IMC), emphasized that hybrid and plug-in hybrid electric vehicles (PHEVs) should be viewed as essential steps toward full electrification.
Given the fossil fuel-dominant energy mix, he argued that a complete shift to battery EVs might not deliver meaningful environmental gains in the short term. For everyday consumers, the calculation is even more straightforward — an electric hatchback still costs more than twice the average annual income, making affordability a greater hurdle than the convenience of charging.
Hussain Jarwar, CEO of the Indus Consortium, expressed optimism that Pakistan could replicate the success of its solar adoption drive if financing and infrastructure challenges are adequately addressed.
Former PAAPAM chairman Aamir Allawala underscored the need to localise component manufacturing to maximise the benefits of EV adoption, warning that battery waste management could become a pressing environmental concern in the future.
According to Muhammad Armughan of the FPCCI, the new study focuses on reducing Scope 3 emissions within IMC’s supply chain and outlines feasible decarbonization pathways. He advocated for fiscal incentives, technology transfer, and green financing as key enablers for a low-carbon transition.
The Way Forward: Policy, Infrastructure, and Investment
Participants collectively emphasised that policy continuity and clear long-term roadmaps are essential to sustaining investor confidence in Pakistan’s evolving automotive ecosystem.
The NEVP 2025-30 envisions at least 30% of new vehicle sales to be electric by 2030 — an ambitious target that demands synchronized efforts across energy, finance, and industry ministries.
Key recommendations from the dialogue included:
- Expanding public charging infrastructure across major cities and highways.
- Providing targeted financial support and subsidies for EV and hybrid buyers.
- Strengthening localisation of auto parts to boost industrial competitiveness.
- Developing regulations for safe battery recycling and disposal.
- Integrating renewable energy generation into the national grid.
While acknowledging the NEVP’s ambitious vision, stakeholders agreed that Pakistan’s path to green mobility must be measured, inclusive, and context-driven. Aligning infrastructure, energy policy, and investment incentives, they said, will be crucial for the country to truly shift gears toward a cleaner and more sustainable transport future.
The next five years will reveal whether Pakistan’s EV dream translates into real roads — or remains another policy parked on paper.
Source: Adapted from a report originally published by Dawn News (dawn.com).
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