In a bid to jumpstart electric vehicle (EV) adoption in Pakistan, senior representatives from the State Bank of Pakistan, commercial banks, and government institutions have agreed to work together on consumer financing mechanisms aimed at making EVs more affordable for the public.
This agreement was reached during a high-level consultative meeting hosted by the Ministry of Climate Change and Environmental Coordination (MoCC&EC), which brought together more than 70 key stakeholders. These included officials from the Pakistan Banking Association (PBA), provincial governments, local EV manufacturers, importers, and regulators. The meeting’s primary focus was identifying scalable solutions to ease EV adoption, particularly through accessible financing.
Presiding over the meeting, MoCC&EC Secretary Aisha Humera Moriani stressed the importance of financial sector engagement. “The banking sector must play a proactive role in offering attractive consumer financing plans,” she said. “Without affordable options for households looking to switch to electric vehicles, progress will remain sluggish.”
A major outcome of the meeting was the formation of a joint working group tasked with crafting green financing proposals tailored for electric mobility. The group will operate within the broader framework of Pakistan’s newly launched National Electric Vehicle Policy 2025–30.
Speaking on behalf of the banking sector, PBA Chairman Zafar Masud — who also heads the Bank of Punjab — cited a successful example already in motion: the BoP’s partnership with the Punjab government under the Chief Minister’s Youth Initiative, through which 18,000 motorcycles, including 5,000 electric bikes, are being provided to students via interest-free installment plans.
“The initiative has seen strong interest from students and parents and could be replicated in other provinces, including Sindh, Khyber Pakhtunkhwa, and Balochistan,” Masud said.
Moriani supported this recommendation, calling on governments — particularly in Sindh — to create similar collaborations with financial institutions. She also urged EV manufacturers to introduce their own affordable financing models in partnership with banks.
The session also addressed complementary regulatory reforms. One major proposal was to impose higher taxes on older, fossil fuel-powered vehicles in order to boost the competitiveness of EVs.
Adding to the momentum, Director General Muhammad Asif Sahibzada announced that the Economic Coordination Committee had recently approved Pakistan’s first Green Taxonomy Framework, dated July 25. This landmark framework serves as a guide for banks and financial institutions to develop sustainable lending products aligned with green goals — including EV adoption.
“Banks can use the Green Taxonomy to roll out targeted green loan products that encourage EV adoption,” Sahibzada said.
Environmental benefits were also highlighted, particularly in the context of public health. Urban Affairs Director Muhammad Azim Khoso drew attention to air quality challenges in Pakistan’s major urban centers.
“Electric vehicles produce zero tailpipe emissions. Their adoption can significantly improve air quality and reduce public health costs,” Khoso noted, pointing to cities like Lahore, Karachi, and Islamabad, which frequently rank among the world’s most polluted.
With momentum now building across sectors, the newly formed working group is expected to begin formulating actionable strategies to support inclusive, sustainable EV financing and accelerate the transition toward cleaner mobility across Pakistan.
