PIDE Recommends 10% Electric Vehicles Goal by 2030 in New EV Policy
The Pakistan Institute of Development Economics (PIDE) has proposed that by 2030, at least 10% of all vehicles in the country must be electric vehicles (EVs).
PIDE Recommends 10% Electric Vehicles Goal by 2030 Target
For the future Electric Vehicle Policy, PIDE has suggested a whole package titled ‘Future on Wheels’ towards an effective policy development in light of the prime minister’s demand for an aggressive EV policy.
These recommendations are based on insights from PIDE’s recently published books on Pakistan’s automobile industry: ‘Driving Backwards: What is Wrong with Pakistan’s Automobile Industry?’ and ‘Wheels of Change: Tracing Pakistan’s Automotive Evolution through Political Economy and Technology Acquisition.’
Pide Proposed Long-Term Policy
PIDE has proposed a long-term policy for the development of the EV industry in Pakistan, with specific short-term, medium-term, and long-term goals.
The short-term targets for 2030 are to make sure that 10% of all new 4-wheelers and 25% of all new 2/3-wheelers sold in Pakistan are EVs.
The shares should increase by 2040 to 50% for 4-wheelers and 75% for 2/3-wheelers. PIDE also recommends that by 2035, 50% of all new 4-wheelers and 2/3-wheelers produced in Pakistan should be EVs.
The policy seeks to integrate Pakistan’s automobile industry into the global value chain for EVs. To this effect, PIDE recommends cutting customs duties on the import of EV inputs and vastly increasing the production of EVs and their components to create more exports.
Target by 2030: PIDE Recommends 10% Electric Vehicles Goal by 2030
By 2030, 10 percent of all EVs and 5 percent of auto parts produced in Pakistan should be exported, with the aim of exporting 50 percent of all EVs and auto parts by 2040.
To facilitate this transition, the government is urged to promote joint ventures between local automotive firms and foreign companies to enhance EV production through Transfer of Technology (ToT) and capital investment.
Engagements on a Government-to-Government (G2G) and Government-to-Business (G2B) basis should also be pursued to attract investment and manufacturing opportunities in Pakistan.
State Bank to Introduce Green Financing: PIDE Recommends 10% Electric Vehicles Goal by 2030
The State Bank of Pakistan is urged to come up with a Green Financing Plan to provide financing through commercial banks for the growth of EVs and their components.
This plan should be targeted towards new manufacturing facilities, expanding existing ones, and installing EV charging infrastructure.
PIDE also strongly underscores the need for R&D on EV technology and connected issues to place Pakistan in the global league of EV transition and recommend the establishment of a fund to support targeted R&D to reduce the cost of production of EVs and recover the value of electricity after the first cycle of discharge. It also suggests safety against environmental degradation of post-service battery waste.
PIDE envisions a sustainable and competitive EV industry in Pakistan, which will contribute to economic growth, environmental sustainability, and integration into the global EV market by implementing these recommendations.
PIDE Recommends 10% Electric Vehicles Goal by 2030 in New EV Policy
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