Pakistan confirms support for electric vehicle production, localization plans

Finance Minister Muhammad Aurangzeb on Thursday met a delegation from BYD Group and Mega Motor Company (MMC) and confirmed the government’s support for the manufacture and localization of electric vehicles in the country, the finance ministry wrote on X.

The ministry said the delegation was led by Mr. Liu Xueliang from BYD Group and General Manager, BYD Asia Pacific Auto Sales Division, and Mr. Aly Khan, Managing Director, Mega Motor Company (Private) Limited.

According to a statement issued by the Ministry of Finance on X, Aurangzeb welcomed the delegation and “appreciated BYD’s growing footprint in Pakistan, emphasizing the importance of strengthening business-to-business cooperation as a key pillar of the evolving Pakistan-China economic partnership”.

He said, “Pakistan gave high priority to attracting technology-driven investments and expressed confidence that the BYD-MMC joint venture would contribute to industrial development, technology transfer, job creation and export growth”.

“Liu briefed the minister on BYD’s operations and plans in Pakistan and highlighted progress in introducing new energy vehicle technologies to the local market in collaboration with MMC,” it added.

Appreciating the Government of Pakistan’s support for the development of the EV sector, he informed the meeting that the construction of the company’s local manufacturing facility is progressing according to schedule and outlined plans to expand its product portfolio, accelerate localization, introduce advanced charging technologies and contribute to Pakistan’s EV ecosystem through investment, added technology transfer and capacity building.

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The delegation said, “Pakistan had growing potential as a market for new energy vehicles and outlined a long-term vision to position the country as a regional hub for EV manufacturing and exports”.

It also highlighted plans to develop charging infrastructure with local partners and train Pakistani engineers and technicians to support future growth in the sector.

Aly Khan told the minister that Pakistan occupied a strategic position in BYD’s global expansion plans and reiterated the joint venture’s commitment to long-term investment in the country. He also briefed the meeting on the progress of the manufacturing project and outlined a phased localization roadmap aimed at increasing local content through engagement with domestic vendors and suppliers, the ministry added.

Aurangzeb said global trends pointed towards an accelerating transition to electric mobility and reiterated the government’s commitment to facilitate investments that support technological advancement, sustainable industrialization and energy efficiency. He said Pakistan’s improved macroeconomic fundamentals and stronger external sector position had created a favorable environment for productive investment and industrial expansion.

The finance minister urged the delegation to accelerate efforts towards local assembly, manufacturing and development of charging infrastructure, noting that a robust charging network would be essential to accelerate the adoption of electric vehicles across the country.

He also highlighted the contribution of Chinese companies to Pakistan’s industrial development and expressed confidence that the BYD-MMC partnership will further deepen economic cooperation between Pakistan and China.

The meeting also included discussions on the future role of electric vehicles and plug-in hybrid electric vehicles (PHEVs) in Pakistan.

The BYD delegation shared international experience on the development of electric markets and highlighted the complementary role that PHEVs play in the transition phase, especially in markets where the charging infrastructure is still under development.

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Participants also discussed opportunities arising from Pakistan’s increasing adoption of solar energy and potential synergies between renewable energy and electric mobility.

Both sides reaffirmed their commitment to strengthen cooperation in electric mobility, local manufacturing, technology transfer, skill development and sustainable transportation with the common goal of positioning Pakistan as a leading regional destination for production and innovation of new energy vehicles, the ministry concluded.