By Engr. Mian Shahid Hamid
The escalating global temperatures have aggravated climate change, with greenhouse gas (GHG) emissions from the transportation sector as a significant contributor. Transportation is responsible for almost one-fifth of global emissions, with gasoline and petroleum-based fuels contributing approximately 95% of transportation energy. Compressed natural gas vehicles also release methane, a potent GHG that contributes to a 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. Pakistan’s transportation sector faces a critical challenge due to its dependence on imported fossil fuels. Although EVs offer environmental benefits, adoption rates are low, still vehicles 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.
With its large population and increasing transportation demands, Pakistan has a unique opportunity to expand its industrial base through the EV revolution. EVs could benefit the economy and environment. Developing a local EV industry could create green jobs and boost economic growth.
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 has 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 fall 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 increased media presence, is essential to educate the public about electric vehicles. This can be further enhanced while inviting the experts on social media and exhibitions.
In order to attract consumers, it is important that the government should incentivize the customs duty and sales taxes to the companies as EVs in Pakistan are still in the early stages. Abolishing the current 10% sales tax and making EVs tax-free for the next decade could incentivize adoption. The government should give financial subsidies through special loans with low interest from the banking sector for purchasing new vehicles as well as upgradation from ICE to EVs. Meanwhile, the special incentives to the commercial sector to install charging infrastructure from the banking sector and lower electricity prices for charging infrastructure reducing the burden of battery imports.
The government should partner with battery manufacturers and technology companies to develop local battery manufacturing capabilities. Installation of charging stations at each filling station nationwide. Public-private partnerships should be encouraged to expedite the deployment of charging stations.
Engr. Mian Shahid Hamid, the writer of this article, leads as Project Director of Progressive Climate Foundation – PCF and is an accomplished EV Research Scholar. This article, titled “The EV Transition: A Solution to Climate Challenges and Economic Burdens,” appeared in the Daily Soon Times Newspaper on 22nd January 2025.
