Islamabad (INP): The demand for Chinese-made electric vehicles (EVs) is surging in Pakistan, driven by increasing fossil fuel costs, a growing trade deficit, and rising environmental concerns. This shift highlights a significant step toward establishing a domestic EV industry, reducing reliance on petroleum imports, and advancing global sustainability goals.
Engineer Ahad Nazir, Associate Research Fellow and Head of the Centre for Private Engagement at the Sustainable Development Policy Institute, emphasized that this Pak-China partnership holds immense potential for boosting economic growth, protecting the environment, and positioning Pakistan as a regional hub for EV manufacturing and innovation. Joint initiatives are already focusing on energy-efficient battery systems, localized vehicle designs, and smart mobility solutions tailored to Pakistan’s unique geography.
Key developments include partnerships such as BYD’s collaboration with Mega Motors to establish EV assembly plants, with operations expected to begin by 2026. These ventures aim to lower EV costs, foster job creation, and build a sustainable electric vehicle manufacturing ecosystem in Pakistan. Additionally, ADM Group has pledged over $300 million for EV infrastructure, including a nationwide network of fast-charging stations and a large-scale manufacturing facility.
Underpinning these advancements is Pakistan’s 2020 National Electric Vehicle Policy, which incentivizes EV adoption through tax breaks, subsidies, and exemptions. The policy targets 30% EV penetration in the vehicle fleet by 2030, aligning with the country’s environmental commitments under the Paris Agreement.
Chinese companies like Contemporary Amperex Technology Co. Limited, which dominates the global lithium-ion battery market, are providing cutting-edge solutions for EVs entering the Pakistani market. Meanwhile, the establishment of facilities near Karachi for producing two- and three-wheelers is integrating battery production with vehicle assembly, further strengthening Pakistan’s EV ecosystem.
Despite the momentum, challenges persist, including limited charging infrastructure, high upfront costs, and inconsistent regulatory frameworks. However, sustained investments and targeted policies are expected to overcome these barriers.
In addition to economic benefits, the transition to electric mobility offers significant environmental advantages. With cities like Karachi and Lahore facing severe air pollution, EV adoption could mitigate health risks and improve the quality of life for millions.
This burgeoning Pak-China collaboration in the EV sector reflects a promising trajectory, promoting innovation, environmental stewardship, and sustainable development in Pakistan.