EV momentum grows amid challenges
"Consistent with experience in several countries of the world, the big push and impetus on EV adoption and conversion would come with tangible government support in the form of subsidies and tax credits," said Umer Khan, Head of Investment Banking at Bank of Punjab while speaking at The second Electric Vehicles (EV) Conference organised by the Climate Action Centre (CAC) and PakEVO.
Further, there are significant pools of liquidity and credit enhancements available for climate finance and EV projects, which need to be accessed with the right pitch to international DFIs, he commented.
Dr Aazir Khan underlined the missed opportunities from previous years when Pakistan's economic situation prevented budget allocations to key EV initiatives.
"We must ensure that fiscal priorities align with sustainable energy goals, especially when climate resilience and green infrastructure are no longer optional," he emphasised.
The discussions revealed that while global EV sales grew by nearly 40% between 2023 and 2024, Pakistan's market penetration remains dismally low. Yet, the mood remained cautiously optimistic as several developments signalled momentum. Among them was Daewoo's ambitious plan to replace diesel buses with EVs on shorter intercity routes, including connections between cities near Lahore, such as Sialkot.
"Our goal is that within the next two years, we will convert our entire short-route fleet to electric," Sheriar Hassan from Daewoo said during the first panel, adding that financing collaborations with BOP are already underway.
However, distribution companies (DISCOs) face serious capacity and load management challenges, making long-route EV bus operations currently unfeasible. Sheriar noted that while Daewoo successfully initiated its first electric bus pilot project between Lahore and Sialkot, the larger intercity network such as Islamabad to Lahore will require time and significant investment to scale.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
14 hours ago
- Business Recorder
ECC approves industrial estate development at PSM land
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved several economic measures including the development of industrial estate at Pakistan Steel Mills (PSM) land, leather export facilitation and major grants for climate and media upgrades. The committee met under the chairmanship of Federal Minister for Finance and Revenue Muhammad Aurangzeb, here on Wednesday, to deliberate on key economic and development matters. In a significant decision, the ECC approved the development of an industrial estate on the land of PSM in Karachi, aimed at boosting industrial activity, generating employment opportunities, and attracting investment. Govt decides to develop SEZ on PSM land The ECC considered and approved the removal of the requirement for Health Quarantine Certificates on the import and export of leather, a measure aimed at facilitating the leather industry and enhancing its competitiveness in international markets. The committee also approved a Technical Supplementary Grant (TSG) for the Ministry of Climate Change and Environmental Coordination for the current financial year 2025-26, enabling the ministry to strengthen its initiatives for environmental protection and climate resilience through participation in the upcoming 30th Session of the Conference of Parties (COP-30) to be held in Brazil later this year. Furthermore, the ECC sanctioned a TSG amounting to Rs2,829 million in favour of the Pakistan Television Corporation (PTVC) for the upgradation of its English News Channel to improve broadcast quality and expand outreach to global audiences. The committee urged the ministry to develop a comprehensive business plan to make the channel self-sufficient and financially sustainable, thereby reducing dependence on federal grants in the future. The chair underscored the importance of timely and effective implementation of these decisions to ensure their intended economic and social benefits. Copyright Business Recorder, 2025
Business Recorder
14 hours ago
- Business Recorder
CM Maryam meets CG: China's largest textile enterprises to invest $150m in Punjab
LAHORE: A new unique record of swift investment by China has been set in Punjab and an MoU has been signed between the Bank of Punjab and Challenge Fashion Private Limited. Under the agreement, 'Challenge Textile Group', one of China's largest textile enterprises, will invest $150 million in Punjab. A state-of-the-art special economic zone will be established on 100 acres in Punjab. The Challenge Group will produce two-to-eight million garments in Punjab by utilizing six million meters of fabric per month. Under Challenge Group, Pakistan's largest advanced and state-of-the-art textile industry will be set up in Punjab. The Challenge Group will export garments through well-known American brands. Through Challenge Group, 18,000 people will acquire jobs in eight months and 25,000 people in next 5 years. The Challenge Group will also obtain raw materials for garment production from Pakistan. The project is expected to generate more than $100 million in annual exports. Chief Minister Punjab Maryam Nawaz Sharif met Chinese Consul General Zhao Shiren in Lahore and Chairman Challenge Group Wego Hong. Matters pertaining to the promotion of textile industry and investment in Punjab were discussed in the meeting. On this occasion, the head of the Challenge Group delegation, Wego Hong, appreciated the investment-friendly policies of CM Punjab Maryam Nawaz Sharif. The CM said, 'Pakistan aims to enhance trade and business partnership to greater heights in the next few years. We are establishing a state-of-the-art and magnificent garment city in Punjab, and will benefit from the expertise and experience of Challenge Group.' She highlighted, 'The Punjab government intends to work with the Challenge Group for attaining the success of garment city in Punjab. The Punjab government will provide complete support for the promotion of investment in the province.' The CM outlined, 'We want to shift China's large textile factories and institutions to Punjab. The 'Challenge Special Economic Zone' will play an important role for brisk industrial development of Punjab. Under the modern textile project, plastic waste is being recycled and used in high-performance fabrics.' She revealed, 'The Punjab government is investing heavily for the promotion of technical skills among the youth through TEVTA. We want to provide market-based, human resources to cater the needs of industrial enterprises.' The Chairman of Challenge Group Wego Hong said that 'we want to bring better textile machinery and technology than China to Punjab. We want to create innovation in the textile market of Punjab.' He lauded that the policies and vision of CM Maryam are encouraging and persuasive for the promotion of foreign investment in Punjab. Chairman of Challenge Group further acknowledged that seeing pro-investment policies of CM Punjab, he was motivated to visit the Punjab province. He added that recent investment of China in Punjab depicts the investment-friendly vision of the CM during her previous visit to China. Copyright Business Recorder, 2025
Express Tribune
a day ago
- Express Tribune
Auto sales plunge 49% post-budget
nalysts are anticipating the automobile sector to keep its pace in the near future owing to improving macroeconomic situation and new production lines introduced by the players. photo: file Listen to article Pakistan's automobile industry experienced a sharp slowdown in July 2025, with sales tumbling 49% month-on-month (MoM) to 11,034 units, according to data from the Pakistan Automotive Manufacturers Association (PAMA). Despite the steep monthly decline, volumes were up 28% year-on-year (YoY) due to a low base in July 2024. Industry experts attribute the MoM slump primarily to the high base of June 2025, when a rush of pre-buying occurred ahead of tax hikes in the FY26 federal budget. The budget introduced an Electric Vehicle (EV) adoption levy and raised the sales tax on 850cc vehicles from 12.5% to 18%, prompting customers to advance purchases before the changes took effect. "The MoM decline is mainly attributed to the high base effect from Jun'25, when sales spiked due to a surge in pre-buying ahead of the increase in vehicle taxes, namely the imposition of the EV adoption levy and the increase in ST on 850cc vehicles from 12.5% to 18% under the FY26 federal budget," wrote AHL Research. The YoY growth is due to a more stable macroeconomic environment with lower interest rates and easing inflation, which has improved consumer sentiment, noted Myesha Sohail of Topline Securities. Breaking down the segments, the 1,300cc and above category saw a 37% MoM decline, with sales dropping to 4,290 units. The 1,000cc segment experienced a 61% MoM decrease, totalling 264 units. Additionally, the below 1,000cc segment recorded a 75% MoM decline, with sales reaching 2,557 units, according to AHL. Among assemblers, Indus Motor Company Ltd (INDU) posted a relatively modest 9% MoM drop to 3,337 units, as gains in Fortuner and Hilux sales (+17% MoM) partly offset declines in Corolla, Yaris, and Corolla Cross (-17% MoM). Pak Suzuki Motor Company Ltd (PSMC) suffered the steepest decline, with volumes shrinking 72% MoM to 3,450 units across all models, led by Alto (-75%) and Wagon R (-84%). Honda Atlas Cars (HCAR) saw sales fall 17% MoM, driven by a 33% slide in Civic/City, though BR-V/HR-V sales surged 3.6 times MoM. In the SUV segment, Sazgar Engineering (SAZEW) recorded a 20% MoM drop to 1,079 units due to weaker Haval demand (-19%). The slowdown was not limited to passenger cars. Two-wheeler sales fell 11% MoM, with Atlas Honda (ATLH) selling 104,276 units (-10%). Three-wheeler volumes plunged 47% MoM, while tractor sales collapsed 57% MoM, with both AGTL (-41%) and MTL (-61%) reporting significant losses. Analysts are anticipating the automobile sector to keep its pace in the near future owing to improving macroeconomic situation and new production lines introduced by the players. "We expect the momentum in auto sales to continue in FY26, supported by lower interest rates and a strong pipeline of new model launches across various engine types, including hybrid and plug-in hybrid," said Sohail.
