The Pakistan Institute of Development Economics (PIDE) has come up with an exciting and ambitious proposal to push for a greener future in Pakistan’s automobile industry. They want 10% of all vehicles in the country to be electric (EVs) by 2030. This recommendation comes as part of their detailed plan for the Electric Vehicle (EV) Policy, which is set to transform Pakistan’s transport sector over the next few decades.
In this article, we’ll explain PIDE’s proposal and its goals for making Pakistan a leader in electric vehicles, helping to improve both the economy and the environment.
What is PIDE Plan for Electric Vehicles?
PIDE has published a detailed plan titled “Future on Wheels” to support the growth of electric vehicles in Pakistan. The main goal of this policy is to gradually shift towards a cleaner, more sustainable transport system by focusing on the following:
- Short-Term Goal (By 2030):
- 10% of all new 4-wheelers (cars, vans, etc.) should be electric.
- 25% of all new 2-wheelers and 3-wheelers (motorbikes, rickshaws, etc.) should be electric.
- Medium-Term Goal (By 2035):
- 50% of all new 4-wheelers and 2/3-wheelers produced in Pakistan should be electric.
- Long-Term Goal (By 2040):
- 50% of all 4-wheelers and 2/3-wheelers should be electric.
- 75% of 2/3-wheelers (motorbikes, rickshaws, etc.) should be electric.
- Export 50% of all electric vehicles and auto parts produced in Pakistan.
These targets are set to encourage more people to buy electric vehicles while also making sure that the country keeps up with global trends in the automobile industry.
How Will This Change Affect Pakistan?
The shift to electric vehicles is not just about reducing air pollution; it will have a huge impact on Pakistan’s economy too. Here’s how:
1. Boosting EV Production and Exports
PIDE suggests that Pakistan’s automobile industry should be integrated into the global value chain for electric vehicles. This means increasing the production of EVs and their components locally. The country should aim to export 10% of all EVs and 5% of auto parts by 2030, with plans to increase this to 50% by 2040.
2. Reducing Pollution and Promoting Sustainability
Electric vehicles are much cleaner than petrol or diesel-powered vehicles. By increasing the number of EVs, Pakistan will contribute less to air pollution and greenhouse gas emissions. This is especially important for cities like Karachi and Lahore, where air quality is a big issue.
3. Creating Jobs and Attracting Investment
PIDE recommends that the government should support joint ventures between local companies and foreign manufacturers. This will help transfer advanced technology and increase investment in electric vehicle production. In the long run, this will create jobs and help grow Pakistan’s economy.
4. Encouraging Green Financing
To help the EV industry grow, the State Bank of Pakistan (SBP) is encouraged to create a Green Financing Plan. This plan would provide loans through commercial banks for businesses that want to invest in manufacturing EVs and setting up charging stations.
The Role of Research & Development (R&D)
PIDE also emphasizes the importance of Research & Development (R&D) in improving EV technology. This includes lowering production costs and making sure that the batteries used in EVs can be recycled safely. By investing in R&D, Pakistan can become a global leader in electric vehicle technology and production.
How the Government Can Help
PIDE believes the government has a huge role to play in supporting the transition to electric vehicles. The government can help by:
- Lowering import taxes on materials needed for EV production.
- Promoting international partnerships between local and foreign companies.
- Supporting new research into EV technologies and charging infrastructure.
- Creating policies that make EVs more affordable for everyday people.
Fuel Price Impact on EV Adoption
One important factor for the success of electric vehicles in Pakistan is the cost of fuel. As fuel prices rise, many people may look to electric vehicles as a more affordable option. By encouraging the growth of the EV industry, the government can help reduce the dependence on expensive fossil fuels like petrol and diesel.
Summary of PIDE’s EV Policy Goals
| Goal | Target Year | Target |
|---|---|---|
| Electric 4-wheelers (new) | By 2030 | 10% of all new 4-wheelers should be EVs |
| Electric 2/3-wheelers (new) | By 2030 | 25% of all new 2/3-wheelers should be EVs |
| EV Production (Overall) | By 2040 | 50% of all new 4-wheelers and 2/3-wheelers should be EVs |
| Export EVs and Auto Parts | By 2040 | 50% of EVs and auto parts produced should be exported |
Final Words
PIDE’s recommendations for the Electric Vehicle Policy are bold, but they provide a clear path toward a greener and more sustainable future for Pakistan. By setting targets for EV adoption, supporting local production, and encouraging international collaboration, Pakistan can significantly reduce its environmental impact and grow its economy. If these plans are successfully implemented, Pakistan will not only improve its air quality but also become a major player in the global electric vehicle market.
