Overview:
Working in collaboration with Dalberg, for the World Bank, our comprehensive assessment of the electric mobility market in Pakistan has identified several critical policy and regulatory barriers inhibiting the transition to electric vehicles (EVs). Key findings highlight the lack of a focal agency to drive the EV agenda across federal and provincial government levels, significant implementation gaps at the provincial level, and the absence of a clear localization roadmap for key EV components such as batteries, motors, and chargers. Additionally, there are notable issues with emission control regulations, including a failed Euro 5 transition attempt, the absence of Corporate Average Fuel Economy (CAFÉ) norms, and a lack of net zero emissions targets for auto Original Equipment Manufacturers (OEMs) and the transport sector. Furthermore, there is no vehicle scrappage policy for older, polluting vehicles, and insufficient incentives for setting up battery recycling facilities.

The reliability and affordability of the electricity grid also need improvement to facilitate the development of a charging ecosystem. Another major barrier is the lack of financing mandates for banks to innovate on funding EVs. We evaluated key policies such as the Automotive Industry Development and Export Plan (AIDEP) 2021-2026 and the National Electric Vehicle Policy (NEVP) 2019, among others, focusing on their measures across supply, demand, and the enabling ecosystem. These policies were categorized by vehicle segments (2W, 3W, e-Buses) and assessed for federal versus provincial responsibilities.

Our analysis revealed several key blockers prohibiting the acceleration of the e-mobility transition. These include gaps in policy, lack of clarity, ownership issues, ineffective policies, resource shortages, and misaligned incentives among stakeholders, particularly at the provincial level. Each blocker was elaborated with justifications for its critical nature, identification of responsible parties, and suggested timelines for addressing the issues. Additionally, we explored how misaligned incentives create trade-offs for the government and stakeholders, hindering cohesive action. By addressing these blockers, we can pave the way for a more sustainable and efficient transport sector in Pakistan.