The Pakistan Institute of Development Economics (PIDE) has presented policy recommendations to increase the production and adoption of electric vehicles in the country.

The proposals include establishing short, medium, and long-term objectives for the development of the EV industry and integrating Pakistan's automobile sector into the global value chain.

A green financing plan for the sector has also been recommended to the State Bank of Pakistan.

The recommendations, compiled under the title "The Wheel is the Future's Guarantee" by PIDE, outline a comprehensive strategy for the growth of Pakistan's electric vehicle industry.

The report suggests that, by 2030, 10% of new four-wheeled vehicles and 25% of motorcycles and rickshaws sold in Pakistan should be electric.

By 2035, 50% of locally manufactured rickshaws and motorcycles should be electric, and by 2040, 50% of all four-wheeled vehicles and 75% of two- and three-wheelers should be electric.

PIDE has also recommended reducing customs duties on the import of components used in electric vehicles. This initiative aims to boost local production of electric vehicles and their components, with a target of exporting 50% of these by 2040.

The report suggests forming joint ventures between local and foreign companies to facilitate technology transfer and investment in Pakistan's manufacturing sector.

PIDE has urged the State Bank of Pakistan to develop a green financing plan to support the production of electric vehicles and their components, as well as to aid the expansion of the existing industry.

Furthermore, the report recommends increasing research in EV technology to reduce production costs and stresses that a balanced and effective policy for the EV industry will lay the foundation for a sustainable future for Pakistan.