Karachi

Clean Energy Transition

Pakistan is facing significant challenges in shifting to electric vehicles (EVs) amidst chronic power shortages.

By Iraj Abid | January 2025


The transport sector is one of the most significant global contributors to urban smog and air pollution. The International Energy Agency (IEA) reports that global CO2 emissions from the transport sector reached nearly eight billion tonnes in 2022. According to the United Nations Environment Programme, traditional fossil fuel vehicles account for a quarter of all energy-related greenhouse gas (GHG) emissions. As environmental awareness grows, electric and hybrid automobiles are gaining traction as a viable substitute for such vehicles. As of 2023, nearly 45 million electric vehicles (EVs) were operating globally. Currently, EVs account for 15% of all new car sales, compared to 14% in 2022. Bloomberg forecasts that global EV sales will reach 16.7 million units by the end of 2024. The Global EV Outlook report (2024) projects that passenger EVs will hit 100 million by 2026, with the cumulative sales value reaching USD 8.8 trillion by 2030.

Although Pakistan is one of the least GHG-emitting countries, it is among the most impacted by climate change. In Pakistan, the transportation sector accounts for about 10% of the GDP but generates around 30% of the country’s total carbon emissions. Combustion engines consume 30% of Pakistan’s hydrocarbon imports, costing over USD 15.6 billion annually. In the fiscal year 2022, the transportation sector was Pakistan’s largest consumer of energy products, using approximately 17.4 million tonnes out of the total 23.09 million tonnes consumed.

Despite environmental and economic benefits, EVs are still a rarity on Pakistan’s roads. By 2024, out of 30 million registered automobiles, only 15,000 (0.05%) were EVs. Hybrid electric vehicles (HEVs) make up less than 1% of the light-duty passenger fleet. Multiple factors constrain the growth of the EV sector in Pakistan. The high cost of EVs keeps them out of reach of most people. The lack of charging infrastructure is another hurdle. As per the Business Recorder, there are currently only eight EV charging stations across the country. Without a robust network of charging stations and affordable electricity, many consumers in the country are skeptical about the practicality of EVs.

Recognizing these challenges, Pakistan’s National EV Policy (2019) aims to turn things around. The policy has set the target of 30% of all new vehicles being electric by 2030 and 90% by 2040. It also envisions half a million motorcycles and rickshaws being electric by 2025. These are very ambitious targets, but achieving them would help reduce the high cost of EVs and overcome the lack of charging infrastructure that currently is a barrier to the speedy development of the EV sector.

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