The Ministry of Industries and Manufacturing has signed a cooperation agreement with the worldwide finance organization that will promote funding for electric and 3-wheeler vehicles (EVs) in Pakistan.
This guidance program seeks to enhance modifications in policy, rules, and benchmarks to create a favorable atmosphere for investment throughout the E2/3Ws value chain, assisting in closing market voids and removing legal and regulatory barriers.
As part of this collaboration, IFC will provide technical implementation assistance and engage with key regulators, including the Engineering Development Board, the nationwide Energy Efficiency and Conservation Authority, and the Pakistan Standards and First-Class Management Authority, to enhance institutional capacity and simplify the development of the e-2/3Ws market in Pakistan.
The signing ceremony was attended by senior government officers, policymakers, industry experts, and development partners.
“A conducive policy and regulatory framework will encourage local manufacturing and allow the uptake of electric and three-wheeler motors,” stated Haroon Akhtar Khan, special assistant to the top minister for industries and manufacturing department.
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He asserted, “Unless this structure is enhanced, the likelihood of achieving the national objectives for electric vehicle adoption will be met.” Khan highlighted the urgency for coordinated efforts to catalyze the adoption of electric cars across the nation.
He stated that priority must be given to e-2/3Ws and electric buses, given their prevalence and socio-economic importance. Key strategies moving ahead include strengthening coordination and clarifying the policy environment, decreasing capital fees through localization and aggregated procurement—especially for e-2/3Ws—and unlocking affordable business financing through risk-sharing instruments.
We’re excited to embark on a partnership with IFC that will offer Pakistan a significant boost to accelerate the shift to electric three-wheelers. With more than 23 million two- and three-wheelers on the road, making transportation sustainable will require scaling up public and private funding in transportation methods and value chains that use little or no fossil fuel, and this project will help us in unlocking potential investment,” said Saif Anjum, Secretary, Ministry of Industries and Production.
“Electric vehicles account for less than one percent of Pakistan’s transport fleet. IFC is committed to accelerating the shift to cleaner transport solutions that reduce reliance on imported fuels and improve urban air quality,” said Zeeshan Sheikh, IFC’s country manager for Pakistan and Afghanistan. “This project helps Pakistan’s broader sustainability goals by selling innovative, energy-efficient transport, in alignment with the World Bank Group’s 10-year Country Partnership Framework for Pakistan.”