To cut emissions and reduce reliance on fossil fuels, the Ministry of Industries and Production has entered into a cooperation agreement with the International Finance Corporation (IFC) to support electric vehicle (EV) adoption in Pakistan, with a focus on two- and three-wheelers. These vehicle types form the backbone of daily transport for millions across the country.
The partnership, formalised during a signing ceremony attended by senior government officials, industry stakeholders, and development partners, aims to address longstanding regulatory and market barriers that have stalled progress on electric mobility.
The project specifically targets the development of a comprehensive policy, regulatory, and standards framework to support investment across the e-2/3W value chain. Despite the presence of Pakistan’s National Electric Vehicle Policy (NEVP) since 2019, electric two- and three-wheelers still comprise less than 1% of the national fleet.
Under the agreement, the IFC will provide technical assistance and implementation support while working in close coordination with regulatory bodies such as the Engineering Development Board (EDB), National Energy Efficiency and Conservation Authority (NEECA), and the Pakistan Standards and Quality Control Authority (PSQCA).
“A conducive policy and regulatory framework is essential to encourage local manufacturing and promote the adoption of electric two- and three-wheelers,” said Haroon Akhtar Khan, Special Assistant to the Prime Minister for Industries and Production. “Without substantial improvement in this framework, achieving the national targets for electric vehicle adoption will remain a challenge.”
Khan emphasised the need to prioritise electric two- and three-wheelers and electric buses, noting their widespread usage and socio-economic importance. He identified policy clarity, stakeholder coordination, localisation to reduce capital costs, and aggregated procurement models as strategic imperatives. He also highlighted the necessity of unlocking affordable commercial financing through innovative risk-sharing mechanisms.
Secretary of Industries and Production, Saif Anjum, called the agreement a “timely boost” to Pakistan’s e-mobility shift. “With over 23 million two- and three-wheelers on the roads, sustainable transportation requires large-scale public and private investment in clean, low-emission mobility solutions. This project will help unlock that investment potential,” he said.
Zeeshan Sheikh, IFC’s Country Manager for Pakistan and Afghanistan, said the transition to electric mobility aligns with broader sustainability targets. “Electric vehicles make up less than one percent of Pakistan’s transport fleet. IFC is committed to helping Pakistan adopt cleaner transport options that reduce dependence on imported fossil fuels and improve urban air quality. This initiative aligns with the World Bank Group’s 10-year Country Partnership Framework for Pakistan and broader sustainability goals.”
The advisory project, which is part of a joint IFC-World Bank e-mobility initiative, will also support the development of regulatory and safety standards for scaling up local manufacturing and infrastructure deployment, including charging stations and testing facilities.
Funding for the initiative comes from the Climate Investment Funds for Pakistan (CIFPAK), a blended finance facility managed by IFC in partnership with the UK’s Foreign, Commonwealth & Development Office.
Pakistan’s NEVP targets 30% of new vehicle sales to be electric by 2030. However, progress has been slow amid regulatory ambiguity and lack of financing. The government aims to convert nearly a third of the country’s existing two- and three-wheeler fleet to electric power by 2030, alongside rolling out adequate charging and quality assurance infrastructure nationwide.
