To help accelerate the adoption of electric mobility in Pakistan, the Ministry of Industries & Production has signed a cooperation agreement with the International Finance Corporation (IFC) that will promote investment in electric two- and three-wheeler vehicles (e-2/3Ws). This advisory project will support policy, regulatory, and standards-related reforms to create an enabling environment for investment across the e2/3Ws value chain, helping to fill market gaps and remove legal and regulatory barriers. As part of the partnership, IFC will provide technical implementation support and work with key regulators – including the Engineering Development Board (EDB), National Energy Efficiency and Conservation Authority (NEECA), and Pakistan Standards and Quality Control Authority (PSQCA) – to build institutional capacity and streamline the development of the e-2/3Ws market in Pakistan. The signing ceremony was attended by senior government officials, policymakers, industry experts, and development partners. “A conducive policy and regulatory framework will encourage local manufacturing and enable the uptake of electric two and three-wheeler vehicles,” said Mr. Haroon Akhtar Khan, Special Assistant to Prime Minister for Industries and Production Division. “Without improving this framework, it is highly unlikely that the national targets set for electric vehicle adoption will be met.” Mr. Khan emphasized the need for concerted action to catalyze the adoption of electric vehicles in the country. He noted that priority should be given to e-2/3Ws and electric buses, given their prevalence and socio-economic importance. Key strategies moving forward include strengthening coordination and clarifying the policy environment, reducing capital costs through localization and aggregated procurement–particularly for e-2/3Ws–and unlocking affordable commercial financing through risk sharing instruments. “We are thrilled to enter into a collaboration with IFC that will provide Pakistan with an important boost to expedite the transition toward electric two- and three-wheelers. With more than 23 million two and three wheelers on road, making transportation sustainable will require scaling up public and private investment in transportation methods and value chain which use little, or no fossil fuel and this project will help us in unlocking potential investment,” said Mr. Saif Anjum, Secretary, Ministry of Industries & 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 & Afghanistan. “This project supports Pakistan’s broader sustainability goals by promoting innovative, energy-efficient transport, in alignment with the World Bank Group’s 10-year Country Partnership Framework for Pakistan.” This advisory project is part of a joint IFC-World Bank e-mobility initiative and will support the implementation of the National Electric Vehicle Policy (NEVP) 2019 by helping develop key regulatory and safety standards to boost e-2/3W manufacturing, aiming for 30 percent of vehicles to run on electricity by 2030. The project is funded by the CIFPAK facility – a climate-related blended finance program – which is managed by IFC, in partnership with the UK Foreign Commonwealth & Development Office. About IFC: IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions, and mobilizing private capital to create a world free of poverty on a livable planet.
PREVIOUS NEXT
