Pakistan is set to transform its transportation sector with a $350 million investment from a prominent Chinese company. This ambitious initiative aims to establish up to 3,000 Electric Vehicle (EV) charging stations across the country, marking a major step towards sustainability, reduced fuel imports, and environmental protection.
A Groundbreaking Collaboration
The agreement, signed at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) headquarters in Karachi, signifies a strategic partnership between Pakistan and Chinese investors. Malik Khuda Bakhsh, Convenor of the FPCCI Energy Standing Committee, revealed that the project would roll out in phases.
Read More: eTurbo Motors launches Pakistan’s fastest electric motorcycles
An initial $90 million will fund the establishment of EV charging stations along the motorway connecting Peshawar to Karachi. By February 2025, an additional $250 million will be invested in local EV manufacturing, boosting domestic production and creating jobs. This collaboration highlights the increasing interest of Chinese firms in Pakistan’s energy sector, including ventures in Thar Coal and alternative energy projects.
Expanding EV Infrastructure
The charging network will extend beyond the motorway, covering major cities such as Karachi, Lahore, Islamabad, Faisalabad, and Multan. Future expansion plans include setting up stations in provincial capitals, Kashmir, and Gilgit-Baltistan. This is a significant leap, given that Pakistan currently has only 11-13 operational EV charging stations.
The government aims to ensure these stations run on both electricity and solar power, further strengthening Pakistan’s commitment to renewable energy. The Sindh government has pledged full support to investors, promising smooth business operations and streamlined documentation processes.
PIDE’s Vision for a Sustainable Future
The Pakistan Institute of Development Economics (PIDE) has laid out a comprehensive roadmap under its “Future on Wheels” framework to complement these efforts. By 2030, the government targets 10% of all new 4-wheelers and 25% of new 2/3-wheelers to be electric. By 2040, these figures are expected to rise to 50% and 75%, respectively.
Key policy recommendations from PIDE include reducing customs duties on EV components to encourage local production, promoting joint ventures between local and international firms for technology transfer, and achieving export targets of 10% of EVs and 5% of auto parts by 2030.
Read More: Trade Shockwaves: EU vs. China in a High-Stakes EV Showdown
While the plan is ambitious, challenges remain. Industry experts have raised concerns about the practicality of achieving these goals. Sunil Manj, an automobile industry expert, pointed out that without a robust charging network, adoption of 4-wheel EVs may remain slow. Similarly, Syed Ali Raza cautioned that poor planning could lead to the failure of charging stations, similar to Pakistan’s now-dormant CNG infrastructure.