Situationer: Is Pakistan ready for ‘the charge’?

THE Middle East war has reshaped conditions in Pakistan's automotive market. With petrol and diesel both at over Rs400 per litre — up from Rs 258.17 and Rs 275.70 before the conflict — consumers have been forced to consider shifting to electrified vehicles.

Prime Minister Shehbaz Sharif has called for a 30 per cent shift to electric vehicles within five years, a target his government says would reduce the fuel import bill by $4.5 billion annually. But questions about how that target is to be achieved, and at whose expense, are still to be answered in their entirety.

Stakeholders across the automotive and energy sectors hold differing views on which technologies to prioritise, how to protect the domestic industry, and what role the state should play in building charging infrastructure.

For electric vehicle manufacturers already operating in Pakistan, the most frequently cited concern is not physical infrastructure but policy continuity.

From battery-only cars to petrol-assisted hybrids, a debate over technology, tax policy and local manufacturing is complicating the country's push toward electrification

Danish Khaliq, Vice President of Sales and Strategy at BYD Pakistan-Mega Motor Company, says the government's EV ambitions require a stable, long-term regulatory environment to translate into investment.

“Consumer interest in modern vehicles, particularly NEVs, is clearly growing, which is encouraging and aligns well with the government's direction. However, unlocking this vision at scale requires a stable and predictable policy environment,” he says.

The current AIDEP 2021–2026 policy, nearing completion, enabled companies including BYD Pakistan to commit to local manufacturing facilities. Khaliq cautions that changes without a clear transition framework could force investors to revisit financial assumptions.

"What the industry requires is a long-term policy horizon of around eight to ten years, which allows OEMs to scale production, introduce advanced technologies, and enable the broader ecosystem," he says.

Mr Khaliq also called for clarity on used-car import policy, which he argues creates market distortions and discourages localisation. He cited Indonesia and Thailand as markets where policy consistency drove scale, lower prices, and stronger domestic industries.

Lucky Motor Corporation's Director of Business Planning and Regulatory Affairs Babar Saleem Khan agrees that the transition must remain "practical, market-driven, and technology-neutral."

BEV, HEV, or PHEV?

Which vehicle technology should lead the transition is the sharpest point of disagreement.

Babar Saleem Khan argues that hybrid electric vehicles (HEVs) are the most viable near-term option: they offer up to 50 per cent fuel savings, need no charging infrastructure, and carry a price premium of around 15 per cent over conventional vehicles, with models available from Rs 6.6 million.

Plug-in hybrids (PHEVs) and range-extended EVs (REEVs) start around Rs 10 million with premiums up to 35 per cent, while pure battery electric vehicles (BEVs) face consumer hesitancy over charging access, battery costs, and resale value.

Aamir Allawala, former Chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), counters that only BEVs deliver genuine zero-emission outcomes. PHEVs and REEVs, he says, still carry petrol engines and exhaust systems and should not receive the same tax treatment as clean vehicles.

"The real benefit from moving towards zero emission and green environment can only be realized through promotion of pure BEVs. PHEVs and REEVs are equipped with batteries but also carry a 1300–1500cc petrol engine, fuel tank and exhaust system. They are not 'zero emission' vehicles," he notes.

Mr Allawala warns that extending concessions to them would allow near-zero-localisation assembly to undercut HEV and ICE manufacturers, which are built with 50 to 70 per cent locally made components and sustain a vendor industry employing 300,000 people directly.

"Safeguarding domestic manufacturing and ensuring competitiveness of made-in-Pakistan auto parts should be the spirit behind the upcoming auto policy 2026–31," says Allawala.

Asif Ahmed, Director of Marketing at Chery Master Motor, takes a different view. “ICE manufacturers will not be able to hold back technological shifts this time. Pakistan has not witnessed any transfer of technology in the past 30 years. Localisation has benefitted the industry, not the consumer,” he says.

He proposes cutting import duties on EVs with sub-50kWh batteries to between 5 and 10 per cent, saying that infrastructure will follow as EV numbers grow.

Charging network

The absence of a widespread charging network is widely cited as a constraint on EV uptake, particularly for pure battery vehicles. A combination of public mandates, private investment, and cross-border partnerships is now directing resources toward the problem, though the pace and scale remain subjects of debate.

BYD Pakistan's Danish Khaliq says the company is developing what it describes as Pakistan's first interconnected EV charging corridor along the Karachi–Peshawar motorway network, with stations planned every 200 to 250 kilometres. The initiative, he says, is intended to address range anxiety and make long-distance EV travel viable.

According to BYD’s Mr Khaliq, "Such developments are critical in shifting EV perception from a city-only solution to a viable nationwide mobility option. However, the next phase will require scaling urban charging infrastructure across residential, commercial, and public spaces."

Malik Khuda Bux, Chairman of the Malik Group of Companies and Senior Advisor to the Pakistan Petroleum Dealers Association (PPDA), says more than 3,000 EV stations are expected to come up in the next three years. Thirteen investors have been issued licences and five stations are already operational in various parts of the country.

The Sindh government has approved a public-private partnership involving China's ADM Group and the Malik Group to build a provincial EV charging network. Under the arrangement, the Sindh government will provide Rs 750 million for 300 charging stations in the first phase, while ADM Group is investing $90 million toward 3,000 stations across Pakistan.

On the regulatory side, the federal government has reduced the power tariff for EV charging stations to Rs 39 per unit from Rs 71. Oil marketing companies have been directed to ensure that at least 10 per cent of their fuel dispensing outlets carry Level-3 EV charging capability, and the Explosive Department will not issue new licences to investors who do not include a plan for EV charging. The Punjab government has separately announced that future vehicle purchases for provincial government use will be electric.

Pakistan State Oil (PSO) reported nine EV charging stations deployed along the Karachi-to-Peshawar corridor in its 9MFY26 financial report. Attock Petroleum (APL) is developing DC fast-charging infrastructure in collaboration with HUBCO Green and Huawei, alongside solar installations at selected retail outlets.

Localisation stakes

How the EV transition intersects with Pakistan's domestic manufacturing base is also a point of contention. Positions vary on whether new investment represents an extension of local industry or a risk to it.

Mega Motor Company (MMC), BYD's official partner in Pakistan, is investing $150 million in a purpose-built NEV manufacturing facility. With an annual production capacity of 25,000 units, the plant is targeted for completion in Q4 2026, with the first locally assembled BYD vehicles expected to reach the market before year-end.

The project is projected to create over 1,100 jobs and, according to the company, avoid an estimated 165,000 tonnes of CO2 emissions by 2034.

Aamir Allawala of PAAPAM argues that manufacturing investment alone is insufficient without binding localisation targets — a standard he says markets like Thailand and Indonesia have applied — to ensure that assembly operations translate into meaningful domestic industrial development.

"Safeguarding domestic manufacturing and ensuring competitiveness of made-in-Pakistan auto parts should be the spirit behind the upcoming auto policy 2026–31. This is essential to provide employment to 65 per cent of Pakistanis who are below the age of 35 years," he reasons.

Allawala also highlights the electric two-wheeler segment as an area of high potential. With an estimated 25 to 30 million two-wheelers currently on the road, he says the Prime Minister's PAVE initiative to promote electric bikes could deliver rapid fuel savings at comparatively low foreign exchange cost, with a consumer payback period of under 18 months.

Published in Dawn, May 23rd, 2026