ISLAMABAD, Oct 27 (APP): The International Finance Corporation (IFC) has provided a grant of US$1.8 million to encourage private sector investment in local production of electric vehicles in Pakistan.
The development comes as part of a broader initiative spearheaded by the Ministry of Industries and Production (MoIP) to formulate a comprehensive policy aimed at accelerating EV adoption in the country.
According to documents available with Wealth Pakistan, a steering committee was established in September 2024 under the Minister for Industries to guide the development of a policy framework promoting the transition to electric mobility.
The committee held multiple rounds of deliberations and created six working groups to focus on key areas such as technology, infrastructure, fiscal incentives, and investment mobilization.
According to the document, technical expertise for the policy was provided by a team of specialists led by Dr. Horizon Walker, a globally recognized expert in electric vehicle ecosystems.
The committee carried out a critical review of existing policies, analysed lessons from successful international programs, and conducted over 60 consultative sessions with stakeholders from provincial governments, academia, the private sector, and industry associations.
By the end of November 2024, the committee had finalized the first draft of the policy, which was soon recognized by the International Monetary Fund (IMF) as a key component of Pakistan’s green economic strategy.
The IMF subsequently adopted the EV initiative as a major element of a US$1.4 billion arrangement under the Resilience and Sustainability Facility (RSF).
The IFC also showed interest and provided a grant of US$1.8 million to encourage private sector investment in local electric vehicle (EV) production in Pakistan.
Secretary of Industries and Production Saif Anjum told a recent meeting of Standing Committee on Finance and Revenue that the IFC grant was a turning point in aligning Pakistan’s industrial policy with global sustainability standards. He said the IFC’s involvement would catalyse local manufacturing, reduce import dependence, and attract more private investment into clean transport technologies.
The policy, backed by both the IMF and IFC, is expected to be rolled out later this year, marking a significant milestone in Pakistan’s transition toward cleaner, more sustainable transportation systems.
Beyond the industrial dimension, the EV policy carries strong economic and environmental implications. Under Pakistan’s commitment to the Paris Agreement, the country aims to ensure that 30 percent of all new vehicle sales are electric by 2030. At the same time, its Nationally Determined Contributions (NDCs) commit to a 50 percent reduction in greenhouse gas emissions by the end of the decade.