KARACHI: Mega Motor Company (Private) Limited, the official partner of BYD in Pakistan, has signed a financing agreement with British International Investment to support the establishment of the country’s first purpose-built large-scale new energy vehicle manufacturing plant.
Under the agreement, British International Investment will provide long-term foreign currency financing covering 25 per cent of the total project cost. The funding will be invested in a state-of-the-art facility that MMC says will deploy advanced automation and world-class manufacturing systems aligned with leading global automotive standards.
The plant is scheduled to begin operations in the second half of 2026.The agreement marks one of the earliest green energy-linked financing arrangements in Pakistan’s automotive manufacturing sector.
It is expected to expand access to affordable clean transport while supporting the country’s broader climate and industrial goals.Pakistan currently ranks among the countries with the poorest air quality globally.
According to the Pakistan Institute of Development Economics (PIDE), the transport sector contributes more than 43 per cent of national greenhouse gas emissions. Research indicates that even a 30 per cent shift to new energy vehicles could reduce total emissions by nearly 20 per cent.
Policymakers and industry leaders view clean mobility as a practical route to cut carbon emissions, reduce reliance on imported oil and stimulate the domestic green economy.The project is expected to create more than 1,100 jobs and contribute to sustainable industrialisation. Company estimates suggest it could help avoid approximately 165,000 tonnes of carbon dioxide emissions by 2034.
Aly Khan, chief executive officer of Mega Motor Company, said Pakistan was at a critical inflection point where clean mobility had become central to long-term economic and energy objectives.
He said the collaboration would lay the foundations of a globally competitive new energy vehicle ecosystem, accelerate adoption and help build a resilient value chain capable of creating jobs, enabling technology transfer and strengthening industrial capability.
Stephen Priestley, managing director and head of financial services group and industries, technology and services at British International Investment, said the investment aligned with BII’s priority of supporting sustainable industrial transformation and climate action. He added that the project would accelerate Pakistan’s energy transition, generate employment in a growing green sector and strengthen the country’s emerging clean transport ecosystem.
