ISLAMABAD: Pakistan’s planning minister has invited China to collaborate with Islamabad in setting up industrial zones to manufacture electric cars amid a renewed push to attract foreign investment, state news agency APP reported on Wednesday.
The government of Pakistan approved an ambitious National Electric Vehicles Policy (NEVP) in 2019 with the goal of electric vehicles comprising 30 percent of all passenger vehicle and heavy-duty truck sales by 2030, and an even more ambitious target of 90 percent by 2040. For two- and three-wheelers, as well as buses, the policy set a goal of achieving 50 percent of new sales by 2030 and 90 percent by 2040.
In a meeting with Chinese officials on Tuesday, Planning Minister Ahsan Iqbal invited them to collaborate on the production of electric cars.
“He emphasized Pakistan’s aim to establish industrial zones for the manufacturing of electric cars in collaboration with China, leveraging Pakistan’s competitive advantage to reduce overall production costs and create employment opportunities for Pakistani workers,” APP reported.
Earlier this year, Sazgar Engineering, one of Pakistan’s leading car manufacturers, unveiled the electric vehicle “ORA 3,” manufactured in collaboration with Chinese car manufacturer Great Wall Motors (GWM).
The urban areas of Pakistan exhibit some of the world’s highest levels of air pollution, primarily due to sub-2.5 μm particulate emissions. This issue significantly impairs both the country’s economy and the quality of life of its residents. Road transport is a significant contributor to air pollution as around 23 percent of Pakistan’s greenhouse gas emissions originate from vehicles.
On Tuesday, Prime Minister Shehbaz Sharif also met a delegation of Japanese industrialists in Islamabad and invited them to invest in Pakistan’s electric automotive industry.
“There is a wide potential for investment in the electric vehicle industry in Pakistan and Japanese companies with the best technology can take full advantage of it,” Sharif told the Japanese group.
Pakistan invites China to establish industrial zones for electric car manufacturing
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Pakistan invites China to establish industrial zones for electric car manufacturing
- Earlier this year, Pakistani car maker Sazgar Engineering unveiled electric car made in collaboration with China
- Road transport is significant contributor to pollution as around 23 percent of Pakistan’s greenhouse gases come from vehicles
Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure
- Both sign $330 million Power Transmission Strengthening Project and $400 million SOE Transformation Program loan agreements
- Economic Affairs Division official says Transmission Project will secure Pakistan’s energy future by strengthening national grid’s backbone
KARACHI: Pakistan and the Asian Development Bank (ADB) on Thursday signed two loan agreements totaling $730 million to boost reforms in state-owned enterprises (SOEs) and energy infrastructure in the country, the bank said.
The first of the two agreements pertains to the SOE Transformation Program worth $400 million while the second loan, worth $330 million, is for a Power Transmission Strengthening Project, the lender said.
The agreements were signed by ADB Country Director for Pakistan Emma Fan and Pakistan’s Secretary of Economic Affairs Division Humair Karim.
“The agreements demonstrate ADB’s enduring commitment to supporting sustainable and inclusive economic growth in Pakistan,” the ADB said.
Pakistan’s SOEs have incurred losses worth billions of dollars over the years due to financial mismanagement and corruption. These entities, including the country’s national airline Pakistan International Airlines, which was sold to a private group this week, have relied on subsequent government bailouts over the years to operate.
The ADB approved the $400 million loan for SOE reforms on Dec. 12. It said the program seeks to improve governance and optimize the performance of Pakistan’s commercial SOEs.
Karim highlighted that the Power Transmission Strengthening Project will enable reliable evacuation of 2,300 MW from Pakistan’s upcoming hydropower projects, relieve overloading of existing transmission lines and enhance resilience under contingency conditions, the Press Information Department (PID) said.
“The Secretary emphasized that both initiatives are transformative in nature as the Transmission Project will secure Pakistan’s energy future by strengthening the backbone of the national grid whereas the SOE Program will enhance transparency, efficiency and sustainability of state-owned enterprises nationwide,” the PID said.
The ADB has supported reforms by Pakistan to strengthen its public finance and social protection systems. It has also undertaken programs in the country to help with post-flood reconstruction, improve food security and social and human capital.
To date, ADB says it has committed 764 public sector loans, grants and technical assistance totaling $43.4 billion to Pakistan.
