ISLAMABAD: Investment company ADM Group has announced it would invest up to $250 million for the manufacturing of electric vehicles in Pakistan, state-run media reported on Thursday, in a move likely to boost technological advancements in the country’s automobile industry and curtail pollution.
Pakistan’s urban areas 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.
Pakistan approved an ambitious National Electric Vehicles Policy (NEVP) in 2019 with the goal of electric vehicles comprising 30 percent of all passenger vehicles and heavy-duty truck sales by 2030, and an even more ambitious target of 90 percent by 2040.
“ADM Group has announced an investment of 250 million dollars for the manufacturing of electric vehicles in Pakistan,” state broadcaster Radio Pakistan said in a report.
It said the understanding was reached during a meeting between the Minister for Industries and Production Rana Tanveer Hussain and ADM Group Chief Executive Officer Yasir Bhambhani in Islamabad on Thursday.
Bhambhani briefed Hussain that charging network stations would be established in the first phase of the project while electric vehicle manufacturing would commence in the second one. An electric vehicle will be able to cover a distance of 300km on one charge, state media reported.
“EVs are being promoted on numerous fronts, including through new federal and provincial policies and by public commitments from automakers to convert their fleets to EVs,” ADM’s website quoting Bhambhani said.
“However, there are still some fundamental issues that could affect the widespread adoption of EVs, including the absence of EV infrastructure in Pakistan.”
Meanwhile, Minister Hussain assured the government would provide all possible facilities to attract foreign direct investment in Pakistan, saying that electric vehicles were now a reality.
ADM Group said on its website that electric car markets were seeing “exponential growth” in Pakistan as sales exceeded 10 million in 2022.
“A total of 14 percent of all new cars sold were electric in 2022, up from around 9 percent in 2021 and less than 5 percent in 2020,” the group said.
It said over 2.3 million electric cars were sold in Pakistan during the first quarter of 2023, about 25 percent more than in the same period last year.
