Pakistan’s banking sector is stepping up efforts to facilitate the country’s transition to electric vehicles, as government officials and major banks come together to explore ways of making EV ownership more accessible and affordable for consumers. Representatives from the State Bank of Pakistan, all commercial banks, the Ministry of Climate Change and Environmental Coordination, as well as EV manufacturers and importers, gathered for a high-level meeting to discuss targeted financial support, consumer financing options, and regulatory changes to speed up the adoption of electric mobility.
The meeting underscored the importance of introducing practical and affordable financing mechanisms to help more Pakistanis purchase electric vehicles. Participants agreed to form a working group that will include banking sector representatives, EV industry players, and relevant government agencies. This group’s mandate will be to devise concrete proposals for “green” consumer financing and other supportive financial mechanisms.
Discussions also included strategies for phasing out older, fossil fuel-powered vehicles, such as imposing additional taxes to make them less economically viable. These measures align with the government’s broader strategy to encourage cleaner transportation alternatives and reduce climate-altering carbon emissions from Pakistan’s transport sector.
Aisha Humera Moriani, Secretary of the Ministry of Climate Change and Environmental Coordination, highlighted the urgent need for banks to offer attractive consumer financing plans for potential EV buyers. She cautioned that without robust support from the banking sector, efforts to scale up electric mobility would remain sluggish. Moriani further advocated for higher taxes on aging petrol and diesel vehicles to accelerate the transition to cleaner alternatives.
Pakistan Banking Association Chairman Zafar Masud pledged the sector’s support for rolling out financing schemes to boost EV adoption. He cited the recent Punjab Youth Initiative, where the provincial government, in partnership with Bank of Punjab, has distributed 18,000 bikes—including 5,000 electric bikes—to students on interest-free monthly loans. The program, which covers both petrol and electric motorcycles with the government absorbing interest costs, has been met with an enthusiastic response from students’ parents. Masud suggested this model could be replicated in other provinces, such as Sindh, Balochistan, Khyber-Pakhtunkhwa, Gilgit-Baltistan, and Azad Jammu and Kashmir, in line with the government’s vision.
The Secretary of the climate change ministry called on other provinces—especially Sindh—to launch similar EV promotion initiatives in partnership with commercial banks. She also encouraged EV manufacturers to set up installment-based purchase schemes for customers, mirroring the convenience of banking models.
Muhammad Asif Sahibzada, Director General of the climate change ministry, noted the recent approval of Pakistan’s first Green Taxonomy Framework by the Economic Coordination Committee. This framework is designed to promote environmentally sustainable investments by facilitating targeted financial support for eco-friendly projects. Sahibzada urged banks to use this framework as a foundation for launching green loan schemes to further encourage EV uptake.
The environmental benefits of accelerating EV adoption were highlighted by Muhammad Azim Khoso, Director of Urban Affairs. He emphasized that Pakistan’s major cities—including Lahore, Karachi, Rawalpindi, and Islamabad—are among the world’s most polluted, with vehicles being a primary source of harmful emissions. Accelerated adoption of electric vehicles, he said, would bring significant improvements to air quality, and in turn, reduce rates of respiratory and cardiovascular diseases, helping to ease the burden on the country’s healthcare system.
With momentum building among banks, policymakers, and industry stakeholders, Pakistan is setting the stage for a more accessible and sustainable electric vehicle market, aiming to reduce pollution and foster cleaner transport solutions nationwide.
