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Experts Highlight Key Factors for Successful EV Adoption in Pakistan

  • January 30, 2025
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On Monday, experts gathered at the EV Summit 2025, organized by the Sustainable Development Policy Institute (SDPI) as part of its Network for Clean Energy Transition: Research and Advocacy program, to discuss Pakistan’s burgeoning EV ecosystem. The event brought together industry professionals, policymakers, and stakeholders to deliberate on the key factors necessary for the successful consumer adoption of EVs and the transition to a sustainable EV-based transportation system in the country.

Engineer Khuda Buksh, from the Engineering Development Board, who chaired the session, highlighted the growing trend of EV adoption and the opportunities in spare parts manufacturing. He emphasized that government policies, including the provision of licenses for Scooty-type EVs, cater to a rapidly expanding consumer base. These policies are designed to encourage localization by promoting completely knocked-down (CKD) kits. “The localization of the EV value chain will reduce costs, increase affordability, and provide significant economic benefits,” Engineer Buksh stated. His comments underscored the government’s commitment to building an EV ecosystem that not only supports environmental sustainability but also contributes to local economic growth.

Sunil Manj, Co-Founder of PakWheels, Pakistan’s first automobile website, addressed the challenges related to EV adoption, particularly the need for standardization and infrastructure development. Manj pointed out that encouraging stakeholders to invest in EV charging infrastructure is critical to the widespread use of electric vehicles in the country. He further stressed the importance of standardizing EV charging tariffs, which are currently set at Rs39.7 per unit, to ensure consistency and build consumer confidence. “Maintaining uniform product standards is crucial to preserving the credibility of EVs and building trust in the industry,” he noted. While the luxury EV segment has seen increasing interest, he highlighted significant barriers to adoption, including high costs, power outages, and unreliable supply chains. Manj also advocated for a review of registration, tax, and toll exemptions to ease the financial burden on consumers and promote broader EV usage across different market segments.

Dr. Naveed Ashraf from LUMS, a key participant in the summit, discussed the pressing issue of battery standardization, a challenge that has both opportunities and complications for EV maintenance and costs. 

“The proprietary nature of EV batteries presents both opportunities and challenges, particularly in maintenance and cost.” 

Adnan Pasha Siddiqui, of Habib Bank Limited, pointed out that while financing for EVs has become more accessible, the sector faces challenges in fraud management and battery-related issues, as he suggested, emphasizing the need for practical financing mechanisms to support EV adoption.

“Lessons from India’s green bonds and priority sector lending could guide Pakistan’s approach.”

Syed Jafar Raza from JS Bank spoke about the bank’s collaboration with the Green Climate Fund to encourage renewable energy-based vehicle charging, particularly for online ride services, an initiative designed to promote the adoption of EVs in the commercial transport sector.

Dr. Khalid Walid, an energy and economic expert at SDPI, traced the evolution of EV development in Pakistan since 2019. The introduction of a tariff structure for EVs was a key milestone, with ongoing efforts to liberalize tariffs and encourage broader adoption. Dr. Walid pointed out that Pakistan now has over 60 manufacturers of two- and three-wheeler EVs and two manufacturers of four-wheelers. However, he stressed that infrastructure development remains one of the biggest challenges to widespread adoption.

During the panel discussion on tackling challenges and exploring solutions, experts like Ahmed Sajeel, an automobile manufacturing expert and former Deewan Motors executive, emphasized the importance of incentives such as tariff subsidies for local assembly. He also highlighted Deewan Motors’ achievement in establishing Pakistan’s first EV charging station at the Bhera Interchange, noting, however, that the limited availability of charging infrastructure restricts the use of EVs to urban areas.

Muhammad Umar Rafique, Director Strategy at BYD, advocated for the CKD (completely knocked down) model as the most sustainable approach for Pakistan, particularly given that the country is still in the early stages of adopting EV technology. “CKD is the most sustainable solution for Pakistan in the long run that will play a pivotal role in rolling out EV technology in Pakistan,” Rafique explained.

Engr. Ubaid ur Rehman Zia, Head of Energy at SDPI, stressed the importance of including phaseout dates for fossil fuel-based vehicles in Pakistan’s New Energy Vehicle Policy (NEVP) 2025. He also called for the policy to be aligned with Pakistan’s international climate commitments, including its Nationally Determined Contributions (NDCs), as a key step in accelerating the transition to cleaner transportation options.

Ms. Saleha Qureshi, the Lead of the Pakistan Industrial Decarbonization Program (PIDP) at SDPI, discussed the need to develop an adaptable EV ecosystem in Pakistan. She highlighted the importance of introducing economic incentives and tailored financing mechanisms not only to strengthen the EV sector but also to contribute to the social uplift of communities across the country.

Dr. Ashiq Hussain of Air University addressed the affordability of EVs, infrastructure readiness, and the importance of fostering domestic manufacturing capabilities. He introduced a specialized EV engineering curriculum aimed at building technical capacity and creating software solutions for future EV innovations in Pakistan.

Dr. Sajid Amin Javed, Deputy Executive Director of SDPI, delivered the vote of thanks, emphasizing the importance of policy coherence and collaborative efforts to scale up EV adoption, urging stakeholders to continue working together to overcome the barriers to EV adoption.

“This is not just about transportation; it’s a transformative step for our economy and climate.”

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