Pakistan partners with IFC to boost investment in EVs

ISLAMABAD: The Ministry of Industries and Production has signed a cooperation agreement with the International Finance Corporation that will promote investment in electric two and three-wheeler vehicles (EVs) in Pakistan.

This advisory project will support policy, regulatory, and standards-related reforms to create an enabling environment for investment across the e2/3Ws value chain, helping to fill market gaps and remove legal and regulatory barriers.

As part of the partnership, IFC will provide technical implementation support and work with key regulators including the Engineering Development Board, National Energy Efficiency and Conservation Authority, and Pakistan Standards and Quality Control Authority to build institutional capacity and streamline the development of the e-2/3Ws market in Pakistan.

The signing ceremony was attended by senior government officials, policymakers, industry experts, and development partners.

Speaking on the occasion, Special Assistant to Prime Minister for Industries and Production Division Haroon Akhtar Khan said a conducive policy and regulatory framework will encourage local manufacturing and enable the uptake of electric two and three-wheeler vehicles EVs.

He emphasized the need for concerted action to catalyze the adoption of electric vehicles in the country.

He noted that priority should be given to e-2/3Ws and electric buses, given their prevalence and socio-economic importance.

“Without improving this framework, it is highly unlikely that the national targets set for electric vehicle adoption will be met,” Mr. Khan noted, adding that focus areas must include localization of production, aggregated procurement, and mobilization of affordable financing through risk-sharing instruments.

Mr. Saif Anjum, Secretary of the Ministry of Industries and Production, highlighted the transformative potential of the partnership, saying, “With over 23 million two- and three-wheelers currently on the road, sustainable transportation is not an option—it’s a necessity. This collaboration with IFC will help unlock investment opportunities and catalyze the transition to cleaner mobility.”

IFC Country Manager for Pakistan and Afghanistan, Zeeshan Sheikh, reaffirmed the institution’s commitment to reducing Pakistan’s dependency on imported fossil fuels and enhancing urban air quality. “This project supports Pakistan’s broader sustainability goals and aligns with the World Bank Group’s 10-year Country Partnership Framework by promoting innovative, energy-efficient transport solutions,” he said.

The initiative will also aid in the implementation of the National Electric Vehicle Policy (NEVP) 2019, which targets 30% of vehicles running on electricity by 2030. Funded by the CIFPAK facility—a climate-focused blended finance program managed by IFC with support from the UK Foreign, Commonwealth & Development Office—the project is part of a joint IFC-World Bank e-mobility platform to foster private sector investment in green transport.