ISLAMABAD: The Sustainable Development Policy Institute (SDPI) roundtable has stressed for early adoption of electric vehicles (EVs) due to their potential to drive economic growth in Pakistan.

The roundtable titled ‘Electric Vehicles and Economic Growth: Industry Perspectives on Pakistan’s EV Transition’ highlighted key opportunities and challenges surrounding the shift to EVs in the country.

Ahad Nazir of SDPI pointed out that the transition to EVs could offer significant benefits for Pakistan, particularly by reducing its dependency on imported fuel, which has long been a burden on the country’s economy.

“The EV sector holds great promise for economic growth, job creation and export opportunities, making it crucial to develop a comprehensive plan that includes infrastructure development,” he added.

Rimsha Rehan from Policy Research Institute for Equitable Development (PRIED), an Islamabad based think-tank, noted that Pakistan’s automotive industry was witnessing a growing interest in EVs.

However, she highlighted the urgent need for a tailored energy vehicle policy to ensure the effective integration of EVs in the market, while Lithium-ion batteries which is the most expensive component of EVs, should be viewed as an essential product rather than a luxury item.

Engr. Ubaidur Rehman Zia, Head Energy Unit at SDPI, discussed the international frameworks shaping the EV conversation, notably the Baku Declaration on Urban Decarbonisation and the Global Green Pledge made at COP29.

“Pakistan is also aligning its energy policies with global decarbonisation goals, which will be reflected in the revised Nationally Determined Contributions (NDC) targets in 2025,” he said, adding that the need was not only focusing on EV technology but also developing the necessary infrastructure and supply chains to support the transition.

Several experts addressed the challenges facing the EV market in Pakistan as engineer Asad Mehmood, a consultant, discussed the confusion among consumers regarding EV purchases and the need for financial assistance. He added that there is a knowledge gap between consumers and bankers.

The roundtable concluded with a consensus on the need for a coordinated effort between the government, industry, and financial institutions to develop a robust EV ecosystem in Pakistan. With the right policies, infrastructure and consumer education, electric vehicles could become a key driver of economic growth, job creation and environmental sustainability in the country.

Published in Dawn, December 14th, 2024