The escalating global temperatures have exacerbated climate change, with greenhouse gas (GHG) emissions from the transportation sector being a significant contributor. Transportation is responsible for almost one-fifth of global emissions, with gasoline and petroleum-based fuels accounting for approximately 95% of transportation energy. Compressed natural gas vehicles also release methane, a potent GHG that contributes to ground-level ozone formation. Air pollution, closely associated with emissions from road transportation, is responsible for more deaths and illnesses than malaria, HIV/AIDS, and tuberculosis combined.
Pakistan’s transportation sector faces a critical challenge due to its dependence on imported fossil fuels. Although electric vehicles (EVs) offer environmental benefits, adoption rates remain low, with EVs constituting just one percent of the market. This slow transition is compounded by inadequate charging infrastructure, leaving EV users facing high energy costs. According to recent studies, EVs could help Pakistan reduce both environmental degradation and its fuel import burden, consequently narrowing trade deficits.
Pakistan’s EV policy is designed to address GHG emissions and provide affordable transportation, with a target of 30% EV sales by 2030. The government of Pakistan introduced the Automobile Industry Development and Export Plan (AIDEP) in July 2021, aiming to support EV production through incentives. Although EVs currently have higher upfront costs due to components like batteries, these costs are expected to decrease with technological advancements and increased adoption.
The government of Pakistan should adopt measures to encourage consumers to transition from internal combustion engine (ICE) vehicles to electric vehicles (EVs). Collaboration between the government and universities, combined with an increased media presence, is essential to educate the public about electric vehicles. This can be further enhanced by inviting experts to speak on social media platforms and at exhibitions.
To attract consumers, it is important for the government to incentivize the reduction of customs duties and sales taxes for EV manufacturers, as EVs in Pakistan are still in the early stages. Abolishing the current 1% sales tax and making EVs tax-free for the next decade could incentivize adoption. The government should provide financial subsidies through special low-interest loans from the banking sector for purchasing new EVs as well as for upgrading from ICE vehicles to EVs. Additionally, special incentives should be offered to the commercial sector for installing charging infrastructure, such as lower electricity prices and reduced import duties on batteries. The government should also partner with battery manufacturers and technology companies to develop local battery manufacturing capabilities. Charging stations should be installed at every filling station nationwide, and public-private partnerships should be encouraged to expedite the deployment of charging stations.
Engr. Mian Shahid Hamid, the writer of this article, is the Project Director of Progressive Climate Foundation – PCF and an accomplished EV Research Scholar. This article, titled “The EV Transition: A Solution to Climate Challenges and Economic Burdens,” was published in the Daily Soon Times Newspaper on 22nd January 2025.
