Globally, energy is regarded as one of the core elements of social well-being and an essential component of sustainable development. Balanced energy supply and demand are vital considerations for any country when it comes to providing clean, sustainable and affordable energy to consumers. The evolution of Electric Vehicles (EVs) presents a transformative opportunity in Pakistan’s transport sector and energy landscape. Pakistan Government has taken a strong initiative and given the order for import of 150 Electric Buses for federal Capital BRT service. Around 30 Electric Buses has been embarked on ship from China and will land in May 2024.
The dependance on imported fuels in Pakistan’s poses a significant threat to our trade deficit. With the trade deficit reaching $1.702 billion in last December 2023 and projected increases in travel demand, this dependency is expected to strain the national exchequer. Between 2013 and 2018, imported fuels accounted for 76% of the total oil consumption in the country. In 2023 alone, the petroleum products share in the total import bill stood at 29.76%. Pakistan spent over $7.628 billion on oil imports, with projections indicating this cost could surpass $30.7 billion by 2025. This reliance has led to inflated petroleum and gas prices, impacting not only transport but also industry and power generation. With transport accounting for 47% of all imports, transitioning to EVs presents a viable solution, potentially reducing oil imports by 25-40%. However, despite this significance, Pakistan’s journey towards EV has been marked with challenges at various fronts, causing a very limited progress. Pakistan initiated its journey towards electric vehicle (EV) policy in 2019 through the draft of the National Electric Vehicle Policy (NEVP). Officially launched in 2020, the NEVP aimed to set ambitious targets for EV adoption and included various incentives for manufacturers, such as reduced custom duty and sales tax for locally assembled EVs. Subsequently, the Engineering Development Board (EDB) introduced an EV policy for 2-3 wheelers and heavy transport. Additionally, the Automotive Industry Development and Export Plan 2021-26 highlighted regulatory backing for EVs. Despite these developments, taxation and regulatory landscapes concerning EVs remained inconsistent, with many incentives outlined in the EV policy remaining unimplemented until later in 2023.
Government has set very ambitious targets for the development of electric vehicle market but unfortunately, has not yet showed the interest to implement the policy rules and regulations for establishment of EV production vehicles and gas charging stations infrastructure in a bid to tackle the effects of climate change. There are lot of challenges ahead but, it is domineering to assess the current progress and regulatory landscape comprehensively. While making the policy the policy makers once again has not carried out in-depth study analysis like converting vehicle into CNG ended into a disaster. Now again the target set for conversion is not seems achievable, like in the first phase, “the government will focus on converting 30% of vehicles, mainly cars and rickshaws into EVs by 2030. Moreover, policy says, 100,000 cars and 500,000 bikes and rickshaws will also be converted to EVs in the next four years, and more than 3,000 compressed natural gas stations that have been closed due to gas shortages will be converted to EV charging stations”.
Government has to adopt a holistic approach while considering the entire transportation system, including infrastructure, energy sources, economic conditions and behavioral changes in the entire society. This will require joint efforts from governments, academic institutions, industries and civil societies.
By Asif Masood
Project Management Consultant