Project On Economic, Social & Environmental Challenges
Electric vehicles (EV) are gaining substantial momentum globally primarily because of their high energy efficiency, lower running, and operations costs, as well as lower tailpipe emissions. As a result of these multiple benefits, the global electric vehicle fleet has been expanding at a rapid pace - primarily driven by policy support by leading governments, technology improvements and declining battery costs. The road transport sector in Pakistan relies heavily on fuel imports. Pollution in major cities has increased to alarming levels. Pakistan currently faces a power surplus crisis. Increased EVs penetration could serve as a productive power demand and help achieve an adequate level of utilization of existing power capacity and bring down unit cost of electricity. Electrification of transportation is one of the effective means to reduce energy intensity in the road transport sector. Besides, EVs offer lower running and operational costs, and as well as lower tailpipe emissions. All these factors put together make for a compelling case for EV adoption in Pakistan.
While recognizing the multiple economic, environmental, and social benefits of electric mobility, Government of Pakistan introduced its first ever National Electric Vehicle Policy (NEVP) for various vehicular segments in 2020. The transport sector accounts for more than 15% of global greenhouse gases. and research shows that without adequate technologies and policies in place, the sector may be responsible for up to 30% of GSGs. Pakistan is no different from this scenario. With no vehicle performance standards or fuel economy directives in place, an increasingly affluent middle class and industrial growth will require higher levels of transportation. This means that the direct impact that transport has on economic activity will be amplified. EV is a viable solution – but one that is costly; and one of the greatest concerns about EV in emerging markets such as Pakistan is cost. Effective deployment of EV certainly requires component indigenization and capacity development, and this is what this project aims at. The impact of transport goes far beyond the obvious. From inclusion to equity, transport is at the heart of economic connectivity, the development of opportunities and even exports. EV deployment and indigenization of technology has two primary impacts. The first is its direct impact as a driver of energy substitution – and thereby its role in reduction on imported fuel and energy insecurity. The second is its role in developing local clusters of expertise (both in terms of local R&D, manufacturing, and testing of important EV components). The project looks at local supply chain development and component indigenization – hence contributing towards local (and perhaps regional) development of the industry, skill and employment generation and adoption of local EVs in the market – leading to a far more sustainable transportation and access model than the current one based on fossil fuels and imported technology and vehicles.
