KARACHI:
The transport sector has emerged as the second-largest source of carbon dioxide (CO2) emissions in Pakistan, trailing only behind energy and power generation, according to a new report jointly released by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Indus Consortium. The study warns that despite policy ambitions to decarbonise mobility, the country’s slow progress toward electric and hybrid vehicles threatens to derail its climate goals.
The rapid motorisation trend, despite being one of the lowest in the world, has compounded the challenge. Between 2018 and 2022, the number of two- and three-wheelers grew by 35%, and cars by 23%, intensifying fuel combustion and urban smog. While the government’s Nationally Determined Contributions (NDCs) and Electric Vehicle (EV) Policy aim to achieve 30% electric vehicle penetration by 2030, the path remains fraught with systemic barriers.
As FPCCI President Atif Ikram Sheikh, while speaking at the inauguration, noted, “the automotive sector’s shift toward clean technology is not just an environmental necessity, it is an economic opportunity.” By tackling emissions with innovation, investment, and policy discipline, Pakistan’s auto industry can drive the nation toward a sustainable, low-carbon future.
The study highlights that road transport dominates emissions within the transport sector, followed by aviation and maritime activities. Most vehicles on Pakistani roads rely on fossil fuels – diesel, petrol, and compressed natural gas – whose combustion releases high levels of CO2, nitrogen oxides, and particulate matter. These emissions contribute not only to global warming but also to deteriorating air quality in cities like Karachi, Lahore, and Islamabad, where particulate pollution often exceeds safe levels by five to ten times.
Adding to the challenge, 60% of Pakistan’s electricity generation still comes from fossil fuels. This means that even if EV adoption rises, emissions would shift from vehicles to power plants rather than being eliminated entirely. Experts warn that without greening the national grid, EVs will not deliver the environmental benefits they promise.
“Considering that 62% of electricity is generated from fossil fuels, a complete shift to electric vehicles alone will not significantly impact the environment,” said Ali Asghar Jamali, CEO of Indus Motor Company (IMC).
The report notes that while the New Energy Vehicle (NEV) Policy 2025-2030 sets ambitious targets, 30% new EV sales by 2030 and 90% by 2040, ground realities are sobering. Pakistan currently has just 35 public charging stations, or 0.15 stations per million people, compared to 25,000 in India and 400 in Nepal. Such inadequate infrastructure severely limits consumer confidence and hinders mass EV adoption.
In addition, the high upfront cost of electric vehicles, driven by import duties, limited local production, and expensive batteries, places them out of reach for the average Pakistani consumer. Banks and financial institutions have been slow to introduce green auto financing, with only about 4% currently offering EV-specific loan schemes.
Policy inconsistency and weak implementation remain core issues. The government’s subsidised e-bike financing programme, for example, was announced but never operationalised. Moreover, a lack of coordination between energy, transport, and industrial policies has resulted in fragmented progress.
Public perception presents another hurdle. Many consumers remain sceptical about the performance, reliability, and resale value of EVs. Misconceptions about battery life, limited driving range, and the unavailability of repair expertise further discourage adoption. With most Pakistanis using vehicles for daily urban commutes amid inadequate public transport, “range anxiety” remains a strong deterrent.
