ISLAMABAD: Pakistan will have 30 per cent of its vehicles electric by 2030, the Minister of Privatisation Abdul Aleem Khan has announced, a bold move towards addressing air pollution and climate change.
Khan, who was speaking at the Transport and Digital Middle Corridor and Beyond session during the UN COP29 summit in Baku, reaffirmed the government’s commitment under its recently launched New Energy Vehicle (NEV) policy. The policy requires that 30 per cent of all new cars, both imported and locally produced, switch to electric power by the end of the decade.
The minister said that Pakistan was targeting 30 per cent of its vehicles to be electric by 2030, with efforts already being made to facilitate electric vehicle (EV) infrastructure, including the installation of charging stations around the country.
The change is attributed to the fact that EV adoption is gaining traction in Pakistan. There has been a significant growth in hybrid vehicle sales in the last year. BYD Pakistan, a joint venture between Chinese EV giant BYD and local firm Mega Motors, has forecast that by 2030, up to half of all vehicles sold in the country will be electrified to some extent. BYD, which is supported by US billionaire Warren Buffett, entered the Pakistani market in August, marking the increasing interest of the world in the EV potential of the country.
To encourage adoption, the NEV policy has a number of subsidies, such as Rs50,000 on electric motorcycles and Rs200,000 on electric rickshaws, with a total of Rs4 billion to be distributed through a public auction.
The government is also seeking to make EV financing more affordable. The policy suggests a decrease in the benchmark interest rate to 15 per cent, and the loans will be provided at 3 per cent Karachi Interbank Offered Rate (KIBOR). The rest of the financing costs will be met by the state.
Other initiatives involve reducing tariffs on EV parts to stimulate local assembly and production, giving free electric bikes to students who perform well, and establishing a New Energy Fund to support clean transport initiatives.
BYD Pakistan has also said that it will set up 20-30 EV charging points in partnership with local oil companies. In the meantime, the Ministry of Energy is developing technical standards of EV charging and intends to provide cheap electricity to EV users.
BYD will first import fully assembled EVs, which are charged higher import duties compared to partially assembled kits. Dewan Motors is also planning to join the EV market through assembling vehicles locally under a completely knocked down (CKD) licence, which can help to lower prices.
All these initiatives are meant to make Pakistan a more sustainable and environmentally friendly transport hub, in line with the global trend to reduce carbon emissions and use clean energy sources.
