PIDE presents policy proposals for growth of EV industry in Pakistan

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ISLAMABAD:

The Pakistan Institute of Development Economics (PIDE) has presented policy recommendations aimed at increasing the production and use of electric vehicles (EVs) in the country.

The proposals include setting short, medium, and long-term goals for the development of the EV industry and integrating Pakistan’s automobile sector into the global value chain. Additionally, a green financing plan for the sector has been recommended to the State Bank of Pakistan.

The recommendations, prepared under the title "The wheel is the future's guarantee" by PIDE, include a comprehensive strategy for the growth of Pakistan’s electric vehicle industry.

The report suggests that by 2030, 10% of new four-wheeler vehicles and 25% of motorcycles and rickshaws sold in Pakistan should be electric.

By 2035, 50% of locally manufactured rickshaws and motorcycles should be electric, and by 2040, half of all four-wheeler vehicles and 75% of two- and three-wheelers should be electric.

PIDE has also recommended reducing customs duties on the import of components used in electric vehicles. The aim is to increase local production of electric vehicles and their components, with a target to export 50% of these by 2040.

The report suggests joint ventures between local and foreign companies for technology transfer and investment in Pakistan’s manufacturing sector.

The PIDE report urges the State Bank of Pakistan to develop a green financing plan to provide financial support for the production of electric vehicles and their components, as well as for expanding the existing industry.

Additionally, the report recommends increasing research in EV technology to reduce production costs and emphasises that a balanced and effective policy for the EV industry will provide a foundation for a sustainable future for Pakistan.