KARACHI: Pakistan is facing a hard truth in its fight against climate change. While it contributes less than 1.0 per cent to global greenhouse gas emissions, it remains among the most climate-vulnerable countries in the world. Repeated floods, heatwaves and water stress have turned climate risks into daily economic and social pressures. At the centre of this challenge is the transport sector, which produces more than 21 per cent of the country’s total carbon emissions and is now under growing pressure to change course.
Industry leaders argue that the transition to cleaner transport must reflect Pakistan’s ground realities rather than ideal models borrowed from developed markets. Ali Asghar Jamali, chief executive officer of Indus Motor Company (IMC), has called for a practical and phased approach that delivers results now while laying the foundation for a cleaner future.
“Sustainability must be pursued through practical and inclusive solutions that deliver measurable results today while preparing us for a greener tomorrow,” Jamali said in comments cited in a recent industry study. He stressed that Pakistan cannot afford to wait for perfect conditions and must instead work with technologies that are already available and scalable within the country’s energy and economic limits.
The data presented in a new study by Indus Consortium and the Policy Advisory Board of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) shows the scale of the challenge ahead. The country’s transport sector is a major contributor to urban air pollution and carbon emissions, driven by rapid growth in vehicle ownership. Despite ambitious policy intentions, progress on cleaner vehicles has been slow.
Under the government’s New Energy Vehicle Policy for 2025 to 2030, 30 per cent of new vehicle sales are meant to be electric by the end of the decade. In reality, annual electric vehicle sales remain below 600 units, highlighting a wide gap between targets and actual adoption.
Several structural barriers continue to hold back progress. Charging infrastructure remains extremely limited, with only 35 public charging stations across the country. This translates into just 0.15 stations per million people, leaving most consumers with little confidence that electric vehicles can meet their daily needs.
At the same time, Pakistan’s electricity mix remains heavily dependent on fossil fuels, with nearly 64 per cent of power generation coming from oil, gas and coal. Without a rapid expansion of renewable energy, the report warns that electric vehicles could simply move emissions from roads to power plants rather than reduce them overall.
Cost is another major hurdle. Electric vehicles remain far more expensive than conventional models, while commercial banks have yet to offer widespread concessionary financing. As a result, cleaner vehicles remain out of reach for most middle-income consumers, slowing mass adoption.
When compared with regional peers, Pakistan’s slow pace becomes even more apparent. India has already installed around 25,000 charging stations, while Nepal, with a much smaller population and economy, has about 400. On a per-capita basis, India’s charging network is more than a hundred times denser than Pakistan’s. Bangladesh also remains ahead, despite facing challenges similar to Pakistan’s. The comparison highlights how consistent policies, affordable electricity and early investment have helped neighbouring countries move faster.
Despite these constraints, the report points to clear opportunities if Pakistan adopts a realistic transition path. Reducing dependence on imported fuel through cleaner transport could ease pressure on foreign exchange reserves and improve energy security. Hybrid vehicles, in particular, are seen as a bridge technology that can deliver immediate emission cuts without relying on an underdeveloped charging network.
IMC is cited as an early example of this approach. The company launched the Corolla Cross, Pakistan’s first locally manufactured hybrid electric vehicle, positioning itself as a first mover in cleaner mobility.
“These results show that meaningful progress is possible even within existing constraints,” said Mian Zahid Hussain, chairperson of the FPCCI Policy Advisory Board, adding that the challenge now is to scale such efforts across the wider industry.
Business leaders argue that the private sector must take a leading role in pushing the transition forward. Atif Ikram Sheikh, president of the FPCCI, said the shift to cleaner transport is no longer a choice but an economic necessity. He stressed that private investment, supported by stable and predictable policies, can help unlock new industries and jobs linked to green mobility.
Others emphasise that policy support will be critical. Hussain Jarwar, Chief Executive Officer of Indus Consortium, said the government’s 2030 targets are demanding but achievable if backed by affordable financing, supportive regulations and faster development of charging infrastructure. “With the right policy environment and financial support, this transition can move from aspiration to reality,” he said.
The report also highlights gaps beyond vehicle technology. Pakistan lacks a formal system for recycling end-of-life vehicles, creating environmental and safety risks that will grow as vehicle numbers rise. Addressing these issues will be essential for a truly sustainable transport system.
Liaqat Ali, chairperson of Indus Consortium, summed up, the road ahead will not be simple. “The path is neither easy nor linear,” he said, “but with collective effort, the automotive sector can move towards a cleaner, fairer and more resilient future.”
