Pakistan's EV sector is ‘like a newborn baby', needs time to evolve, say experts

Business Recorder

08-07-2025

KARACHI: Pakistan is seeing an emerging momentum around new energy vehicles (NEVs) amid the government's NEV Policy 2025 – 30. However, despite the growing presence of global EV brands like BYD, Deepal, and MG, experts say Pakistan still lacks the ecosystem to support wide-scale adoption such as EV infrastructure and charging networks.
Shafiq Ahmed Shaikh, automobile consultant and expert, told Business Recorder that 'the electric vehicle sector is just like a newborn baby in the country. If we are expecting that in a day or two this sector will perform like our decades-old gasoline vehicles infrastructure, it is wrong and not a good comparison.'
He said there is no denying the federal government has been doing serious work in the area - its National Electric Vehicle (NEV) Policy 2025-30 aims to significantly increase the adoption of electric vehicles and promote sustainable transportation. Another electric vehicle policy is also in the pipeline and several investors along with the government are working on easy access infrastructure.
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'In a couple of years, if the government's support remains, we will definitely witness good and reliable infrastructure as well as excellent spare parts, services and advanced featured EVs.'
'It augurs well that the world knows EV companies are eager to build their plants in the country. When it comes to the future of EV and its infrastructure, both are really bright,' he added.
'10-year stable, incentive-backed framework is non-negotiable'
Auto expert Syed ShabbirUddin - who has over two decades of experience in the automotive industry and has led a successful EV introduction in the country - said Pakistan's EV Policy 2025 is directionally correct, but structurally weak.
He told Business Recorder that with global battery costs dropping, a mass EV transition is expected by 2027. 'Pakistan must act now or risk becoming a dumping ground for outdated technology - Mere assembly of imported EVs won't cut it.'
He explained that the country needs to localize high-value components like direct current (DC) chargers, charging cables, and EV motors—especially when it has raw materials like copper available.
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Critical dual-use components such as braking systems and automotive-grade Cold Rolled Coil (CRC) steel must also be localized.
'There's no reason why Pakistan shouldn't be hosting suppliers like Continental AG, Aisin, or Valeo, just like India did decades ago,' he said, adding: 'the fundamental flaw remains our short-term policy horizon. A five-year policy gives the industry barely enough time to align before the next policy shift threatens to undo progress. A 10-year stable, incentive-backed framework is non-negotiable. Without it, Pakistan will fall further behind regional players who are already racing ahead in EV industrialization.'
Improved urban air quality
Meanwhile MG Motors Pakistan GM Marketing Division Syed Asif Ahmed said once the NEV Policy 2025 – 30 is approved, will align Pakistan with developed nations in classification of zero emission vehicles.
The policy is poised to make a major dent in transport-related emissions, which currently account for 43% of the country's airborne pollutants.
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Ahmed said that by promoting zero tailpipe emission vehicles, the policy can achieve improved urban air quality and reduced smog. Lower particulate matter means fewer respiratory illnesses and better public health outcomes.
The policy also aligns with Pakistan's broader climate goals, including a net-zero transport fleet by 2060, and leverages the country's 37% renewable electricity mix to ensure that EVs remain clean from source to street.
PHEV, EV and Hydrogen Cell Powered Vehicles are classified as NEV due to their ability to produce zero emissions.
Earlier, under pressure from automotive giants, developing countries were forced to consider hybrid vehicles as NEV to enjoy tax subsidies. Unfortunately, these subsidies neither helped the environment nor were passed on to the end user. Both the principal and the local partner remained the beneficiary of such subsidies at the expense of people, government and local environment.
Unlike hybrid vehicles, plug-in hybrids are an ideal urban mobility solution as they offer pure EV range. PHEVs also save early adopters from so-called range anxiety on long routes as they shift to hybrid modes after exhausting their EV range.
Pakistan's NEV targets of zero emission and fuel savings are aligned with global trends, though its timeline is more gradual compared to the US, China and even India.
As a result, automotive assemblers in Pakistan will introduce more PHEV variants with the support of global partners causing fuel bills to go down and exhaust emission to reduce.
'However, whether consumers enjoy gains from the tax benefits offered by government or end up buying overpriced vehicles like hybrids remains to be seen,' Syed Asif Ahmed said.