PIDE’s Roadmap to Transform Pakistan’s EV Industry
— December 15, 2024
ISLAMABAD (AIA) The Pakistan Institute of Development Economics (PIDE) has unveiled an ambitious roadmap to accelerate the growth of Pakistan’s electric vehicle (EV) industry, presenting a series of policy recommendations aimed at fostering a low-carbon future. Titled Future on Wheels, PIDE’s recommendations focus on key priorities, including technology transfer, integration into the global value chain, export-oriented production, and reducing the upfront cost of EV adoption.
This policy framework comes in response to Prime Minister Shehbaz Sharif’s directive in September 2024 to develop a robust EV policy. PIDE’s recommendations draw on insights from two of its publications, Driving Backwards: What is Wrong with Pakistan’s Automobile Industry? and Wheels of Change: Tracing Pakistan’s Automotive Evolution through Political Economy and Technology Acquisition.
PIDE has suggested setting clear targets across three timelines: by 2030, 10% of new four-wheelers and 25% of two-/three-wheelers should be EVs, with 10% of EVs and 5% of auto parts produced to be exported. By 2035, 50% of four- and two-/three-wheelers produced domestically should be EVs, while by 2040, 50% of all new four-wheelers and 75% of two-/three-wheelers should be electric. Additionally, 50% of all EVs and auto parts manufactured in Pakistan should be exported by 2040.
Key recommendations include lowering customs duties on imported EV components to boost local production and exports, encouraging joint ventures between local and foreign firms for manufacturing and technology transfer, and promoting green financing. The State Bank of Pakistan is urged to provide financing options to support EV production, charging infrastructure, and R&D activities.
To further support industry growth, PIDE advocates establishing a dedicated research fund focused on reducing EV production costs, battery reuse, and the safe disposal of battery waste. The recommendations aim to integrate Pakistan’s automobile sector into the global EV value chain, drive export-led growth, and advance environmentally sustainable solutions.
The complete policy recommendations can be accessed on PIDE’s website: https://pide.org.pk/research/
Karachi
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