Pakistani automobile joint ventures with Chinese automakers BYD and Changan have recently launched several all-electric and plug-in hybrid models of automobiles in Pakistan. Earlier, Honda Atlas Cars Pakistan Limited announced plans to build a hybrid electric vehicles plant in the country. Other major brands like Toyota, Haval, and Hyundai are already offering similar models in the country. It all began with the 2019 electric vehicle policy approved by the government of Prime Minister Imran Khan to incentivize the electrification of the auto industry. Pakistan EV policy goal is to achieve 30% of new cars sales, 50% of new 2-wheeler and 3-wheeler sales and 30% of new truck sales by 2030. By 2040, the target is 90% of all new vehicle sales to be electric. The main incentive is the reduction of sales tax from 17% for internal combustion engine (ICE) vehicles to 1% for all-electric (EV) vehicles.
BYD Launch:
Chinese electric vehicle giant BYD has announced plans to open an EV production plant in Karachi. It will start selling three EV models in Pakistan through a partnership with Mega Motors. Mega Motors is a unit of Pakistan's largest private utility Hub Power Co Ltd (HPWR.PSX), known as Hubco.
"Our entry into the Pakistani market is not just about bringing advanced vehicles to consumers," said Liu Xueliang, BYD's general manager for Asia Pacific, according to
Reuters. "It's about driving a broader vision of environmental responsibility and technological innovation." "We will establish Pakistan's first NEV assembly plant... dedicated to producing BYD's cutting-edge new energy vehicles," said Hubco Chief Executive Kamran Kamal, who described the deal as a "landmark investment".
The BYD factory will be built near Karachi’s Port Qasim area that already houses assembly plants for other automobile companies including Toyota, Suzuki Motor Corp. and Kia Corp.’s local units. It will be completed in the first half of 2026, according to Bloomberg.
Last year, BYD’s total production – comprising battery-only powered cars as well as hybrids – was more than 3 million and surpassed Tesla’s production of 1.84 million cars for a second straight year, according to
CNBC.
A BYD model comparable to Tesla Model Y is $10,000 cheaper and has more features, according to
news reports.
Changan Launch:
Master Changan Motors Limited (MCML), a joint venture between Pakistan's Master Group of Industries and China's Changan International, launched Changan’s electric-first brand, DEEPAL, this month in Karachi, Pakistan. The joint venture unveiled the brand Deepal with 2 models, L07, the pure electric sports luxury sedan and S07 the pure electric premium SUV.
Both Changan models offer 250 HP and 320 Nm of instant torque, going from 0-100 km/hr in just 5.9 seconds. The Ternary Lithium battery by CATL has a capacity of 66.8 kWh and provides an exceptional range of up to 540 km in L07 and 485 km in S07. The cars are designed in Italy in Changan’s R&D center and have won the German RedDot design award in 2023 with its futuristic design, according to
media reports.
Changan has sold 45,000 cars in Pakistan in the last 5 years.
Honda Atlas:
Last month Honda Atlas Cars Pakistan Limited (HACPL) announced its plan to invest
Rs. 5 billion in a cutting-edge hybrid vehicle production facility in Pakistan. This investment will support the local manufacturing and assembly of hybrid electric vehicles (HEVs).
The company recently reported a 324% jump in sales, totaling Rs. 15.97 billion compared to Rs. 3.77 billion in the same period last year. The company reported a gross profit of Rs. 1.01 billion for the first quarter of FY25.
Two and Three Wheelers:
Prior to the BYD and Changan EV launches, Pakistan granted EV manufacturing licenses to 32 local companies under the EV Policy 2019, according to the
Business Recorder newspaper. Metro Electric Bikes, VLEKTRA and Sazgar Engineering Works are among the key names leading the two and three wheeler EV manufacturing in Pakistan.
“Motorcycle buyers have started to inquire about electric bikes, scooty, and scooters options. I believe many have postponed buying a normal two-wheeler with expectations that an electric two-wheel model may soon enter the market that is closer to their need,” said Sabir Sheikh, who is also the Chairman, Association of Pakistan Motorcycle Assemblers (APMA), according to media reports.
Charging Infrastructure:
A number of investors, including ADM Group, Hashoo Group and Hubco are planning to invest in building a nationwide EV charging stations network. The EV policy provides incentives for it by reducing import duty on charging equipment imports to just 1% and lower power tariffs. It also ensures uninterrupted power supply on feeders fir charging stations.
Hubco said it will setup fast-charging stations across major cities, motorways and highways to enhance Pakistan's charging infrastructure, according to Reuters. The EV policy calls for at least one fast DC charging station per 3km by 3km area in all major cities as well as DC fast chargers on all motorways every 15-30 km.
Solar Power Boom:
With rapidly falling solar panel prices, Pakistan is experiencing a
solar power boom in the country. The country imported some 13 gigawatts of solar modules in the first six months of the year, making it the third-largest destination for Chinese exporters, according to
Bloomberg.
Rapid increase in solar power generation complements Pakistan's push to a
clean energy economy and EV adoption. This may encourage some of the charging station operators to go solar with batteries to reduce their cost of power purchases from the grid.
Climate Action:
Pakistan has contributed only 0.28% of the CO2 emissions but it is among the biggest victims of climate change. The US, Europe, India, China and Japan, the world's biggest polluters, must accept responsibility for the catastrophic floods in Pakistan and climate disasters elsewhere. A direct link of the disaster in Pakistan to climate change has been confirmed by a team of 26 scientists affiliated with World Weather Attribution, a research initiative that specializes in rapid studies of extreme events, according to the New York Times.
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| Top 5 Current Polluters. Source: Our World in Data |
Currently, the biggest annual CO2 emitters are China, the US, India and Russia. Pakistan's annual CO2 emissions add up to just 235 million tons. On the other hand, China contributes 11.7 billion tons, the United States 4.5 billion tons, India 2.4 billion tons, Russia 1.6 billion tons and Japan 1.06 billion tons.
The United States has contributed 399 billion tons (25%) of CO2 emissions, the highest cumulative carbon emissions since the start of the Industrial Revolution in the late 18th century. The 28 countries of the European Union (EU28), including the United Kingdom, come in second with 353 billion tons of CO2 (22%), followed by China with 200 billion tons (12.7%).
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https://www.brecorder.com/news/40292113
TCS Private Limited, one of the largest logistics organizations in Pakistan, initiated a pilot project in December 2023 with 50 electric bikes in collaboration with the start-up ezBike. These bikes are equipped with 2KW batteries and have a range of up to 100 km, capable of carrying a 40 kg delivery box.
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Pakistan is seeing a massive surge in intent and efforts when it comes to adopting electric vehicles (EV), but there are significant challenges – including logistical constraints – on the road ahead, say experts.
Surging fuel prices, record inflation, and an economic crisis in the backdrop of devastating floods and effects of climate change have all pushed consumers towards the ‘greener’ option. However, many still believe that it will take a lot more before EVs become a more common sight in Pakistan.
“EVs (four-wheel) or even electric bikes are mostly bought by the affluent, and these are their second vehicle, rarely used, mostly as a hobby,” said auto dealer Anjum Rizvi who has a showroom in Karachi’s Khalid Bin Waleed area.
“Most people are reluctant to buy EVs. It’s not because they don’t like them. They see it as an ‘experiment’ at the moment and in this time of high inflation, no one wants to experiment with money.”
While Pakistanis may need to wait before seeing EVs ply on the roads, the harm being caused by traditional vehicles will be irreversible.
Yasir Hussain of Climate Action Center – a group that creates awareness for climate change initiatives – said roughly, over 50% of Pakistan’s air pollution in urban areas comes from tailpipes. Reducing pollution due to mobility will be one of the major feats for a sustainable future.
Rizvi said positive user experiences will be the biggest reason behind people embracing EVs at an individual capacity.
“Government can play a role and more importantly, the bulk use of transport, such as ride-hailing and logistics companies, can play a role as they can overcome challenges comparatively easily as compared to individuals,” Rizvi said.
Experience so far
However, the picture in the industry setup tells a different story.
After interviewing at least half a dozen key players in the ride-hailing, delivery and logistics space, there are several hindrances in the adoption of EVs.
Hussain of Climate Action Center said electric motorcycles have been facing challenges in the ride-hailing segment because the passenger weight significantly reduces efficiency – the prime reason for adopting an electric bike.
Rafiq Malik, chief operating officer of Bykea, among the leading players in the space, corroborated this. He also mentioned that extra weight and speed significantly reduce range.
“The first wave of EVs generally isn’t well-suited for a bike-taxi business. Similar feedback comes from Gojek in Indonesia and Ola in India (once you remove the subsidies).”
Bykea conducted a pilot with electric bikes from January to June last year. However, they encountered significant challenges.
In an interview with Business Recorder, Malik stated the first challenge is the high price of electric bikes, which is on average 3-4 times higher than that of an ICE (Internal Combustion Engine) motorcycle.
The company also struggled with battery performance.
“We experienced performance uncertainty and noticed the battery performance deteriorating over time. Initially, we achieved 70 km per charge, which dropped to around 50 km per charge by the third or fourth month,” Malik said.
Another challenge they faced was electric bike maintenance.
“There is no repair ecosystem available, and drivers would have to return the bike to the vendor for minor repairs, leading to significant downtime and revenue loss.”
Last month, Automobile brand Huazi Green Energy, a joint Pakistan-China venture, announced the plan to display the first electric car in Islamabad this month, achieving yet another score in Pakistan’s EV endeavour.
https://www.app.com.pk/global/pakistan-catching-ride-on-global-ev-boom/#google_vignette
In May, Chinese vehicle manufacturing company Huaihai in collaboration with its Pakistani partner announced that it is seeking to expand its existing business by investing $10 million in manufacturing electric vehicles, starting with two-wheeler and four-wheeler vehicles in Punjab.
Among the global players, China’s presence in the international EV market has become too prominent to be neglected. Among the global EV sales, 59% are contributed by China, which is also the world’s biggest EV producer, with 64% of global volume.
In the first half of this year, China’s EV brand BYD witnessed a record-breaking 95.8% increase y-o-y of cumulative sales, snapping global sales champion. Last month, the country rolled the 20 millionth EV vehicle off the assembly line, China Economic Net (CEN) reported on Wednesday.
Pakistan is not the only country that has set its eye on the biggest automaker in the world as international venerable auto brands are trying to snatch a share of China’s EV dividend.
Also last month, German automobile manufacturer Volkswagen invested $700 million in leading Chinese smart EV company XPENG, taking 4.99% of the latter’s shares. They also announced the joint development of two B-class battery electric vehicles (“BEV”) models for sale and collaboration on future EV platforms, software technologies and supply chains.
Following its subsidiary Audi’s move to join hands with China’s SAIC Motor to develop intelligent connected vehicles (ICVs), this was considered by some auto experts as a watershed moment for China’s auto sector to shift from technology import to export, which is expected to shape a new international divison of labor.
A number of Chinese companies such as BAIC, Changan, JAC Motors, Great Wall Motors, MG, FAW, and Chery Automobile have established their presence and even formed joint ventures in Pakistan, driving the EV industry in the country towards intelligence and electrification.
“While there is a long way to go for Pakistan to build the EV infrastructure, cut down EV prices, and produce parts locally, we have a lot to benefit from the technology transfer from global tycoons like China. On my visit to one of the EV manufacturing hubs in China, Yangtze River Delta, I was surprised to see that a new energy vehicle can be produced within four hours, with chips and software from Shanghai, batteries from Changzhou, Jiangsu Province, and integrated die-casting machine from Ningbo, Zhejiang Province. In the complete, highly-efficient supply chain, there are countless models for us to learn from”, a Lahore-based automobile seller said.
https://english.aaj.tv/news/330365159/budget-2024-25-production-of-solar-panels-inverters-and-batteries-becomes-cheaper
According to the finance bill, the government has eliminated all taxes on machinery and equipment used in the manufacturing of lithium-ion batteries, most of these were subjected to taxes ranging from 5% to 20%.
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Pakistan’s energy system strained by surge in solarization, battery tech
https://www.thenews.com.pk/print/1215486-pakistan-s-energy-system-strained-by-surge-in-solarization-battery-tech
ISLAMABAD: The rapid solarization and advancements in battery technology are increasingly challenging Pakistan’s existing energy system.
The influx of over 7,000 megawatts of imported capacity, coupled with some industrialists and bulk consumers installing in-house plants of up to 1.5 megawatts, threatens to disrupt long-term agreements with Independent Power Producers (IPPs).
This situation is exacerbated by mounting frustration among power consumers, who are being burdened with substantial multi-billion-rupee capacity charges on their monthly bills.
The provincial governments, especially Punjab and Sindh’s distribution of solar panels to the public, will further pressurise the system, as they will now be drawing less from the grid and so the burden of capacity charges will increase and ultimately the tariff, which will further take away consumers from the grid power.
“Various bulk consumers have done aggressive solarization, even they installed capacity of up to 1.5 megawatts and have kept the grid at backup,” Chairman Nepra Waseem Mukhtar said while presiding over a public hearing on Wednesday adding, “It’s [solarization] a threat.”
The Nepra chairman said that this 7,000 MW imported solar capacity is not for only rooftops, bulk consumers are also installing their big capacities. He also tasked the CPPA with conducting a study on solar energy usage, mapping and submitting a report to Nepra.
Central Power Purchasing Agency (CPPA) while pleading the case on behalf of Discos reported that electricity consumption in June 2024 was 10 percent lower than the reference period consumption, while two percent less than last year.
Waseem Mukhtar said that the government has launched a study to determine if Pakistan requires additional power generation capacity. He emphasized the need for a logical approach to adding more electricity to the national grid. The study is also evaluating that Commercial Operating Dates (CoDs) for some plants may be postponed, he said, mentioning that the study will determine which plants can be retired early.
https://www.washingtonpost.com/world/2024/09/02/india-china-manufacturing-supply-chains/
NEW DELHI — American businesses looking to reduce their reliance on China have increasingly been eyeing India in the past few years as a new manufacturing hub — and as a hedge against potential disruptions in Chinese supply chains caused by rising geopolitical tensions or another pandemic.
But as India has amped up its production of goods like smartphones, solar panels and medicine, the Indian economy itself has become even more dependent on Chinese imports, in particular for the components that go into these products, according to trade figures and economic analysts.
This dynamic serves as a reality check for U.S. policymakers, who have been urgently promoting efforts to diversify supply chains away from Chinese factories and “de-risk” the commercial relationship with China.
“Unless China stops being the third party from where components come in and we just assemble, that de-risking is not going to happen for any country coming in and producing in India,” said Sriparna Pathak, an associate professor at Jindal University focusing on India-China relations.
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To support the production of Indian textiles and garments, another important export industry, India has been ramping up imports of yarn and fabric from China. Even the automobile industry — considered a success story for both domestic and export sales — has been increasing its imports of vehicle parts and accessories from China.
As with electronics, India has made significant strides in producing solar panels but now relies even more on the Chinese solar cells that go in them.
After the United States restricted imports of Chinese solar panel material because of concerns about human rights and labor abuses, Indian exports of solar panels to the American market spiked in 2022, increasing in value by almost 150 percent, according to U.S. government trade figures. The next year saw an even sharper increase.
During that time, however, India sourced between half and all of its solar panel components — such as modules, cells, wafers and solar glass — from China between 2021 and 2023, according to a BloombergNEF report at the end of last year.
Senior Biden administration officials said it is not realistic to think that inputs from China can be excluded at this moment from American supply chains. “We have taken a more practical view that in order to effectively diversify, the first step is to get a foothold in the parts of this supply chain where you can diversify today. And then from there you can grow upstream,” said a senior administration official, speaking on the condition of anonymity to discuss sensitive strategies toward China.
Addressing the significant presence of Chinese components in Indian-made solar panels, the official said: “We recognize we are in the first inning of a long game, but we are at an inflection point in that there is now a clear recognition, not just in the U.S. and India but among friends and allies, that being overly reliant on one source for the clean-energy economy is not sustainable and requires a concerted effort to de-risk. But it’s going to take time.”
https://finance.yahoo.com/news/electric-vehicles-account-half-auto-090125014.html
KARACHI (Reuters) - Up to 50% of all vehicles bought in Pakistan by 2030 will be electrified in some form in line with global targets, BYD Pakistan, a partnership between China's BYD and Pakistani car group Mega Motors, said.
Warren Buffett-backed Chinese electric vehicle giant BYD last month announced its entry into Pakistan, making the South Asian nation of 250 million people one of its newest markets.
The partnership has announced plans to open an assembly plant in early 2026, but will introduce vehicles for sale later this year, after launching three models in August.
"I see conversion to new energy vehicles NEV at up to 50%," Kamran Kamal, BYD's spokesperson in Pakistan, told Reuters in an interview at his office on Thursday. Kamal is also the CEO of Hub Power, which owns Mega Motors.
The target is an ambitious one for Pakistan's auto sector, which has been largely dominated by Japanese automakers Toyota, Honda and Suzuki, with vehicle sales hitting a 15-year low in the fiscal year to June.
Recently South Korea's KIA has begun challenging for market share along with Chinese companies Changan and MG, all of whom offer hybrid vehicles. BYD Pakistan is the first major new energy vehicle entrant in the Pakistani market.
Hybrid electric vehicle sales in Pakistan have more than doubled in the past year. While reaching 30% NEV adoption by 2030 is feasible, achieving 50% may be more challenging due to infrastructure hurdles, said Muhammad Abrar Polani, auto sector analyst at Arif Habib Limited.
Kamal said the challenge of charging infrastructure would be addressed by government plans to incentivise its construction.
Local media reported in August that standards for EV charging stations had been drafted by the power ministry, with the government considering offering them affordable electricity.
Kamal said BYD Pakistan is collaborating with two oil marketing companies to establish a charging infrastructure network and aims to establish 20 to 30 charging stations within the initial phases concurrent with the rollout of its cars.
BYD Pakistan will initially sell fully assembled vehicles, which are subject to higher import charges than vehicles shipped in parts and assembled locally.
"Our main focus is to have locally assembled cars on the roads as soon as possible," said Kamal, citing difficulties in importing and selling fully assembled units under Pakistan's current duty structure.
Kamran said BYD Pakistan is deciding on the size of a new plant, but details about the investment and partnership with power utility HUBCO will be disclosed later.
https://www.scmp.com/business/china-business/article/3278236/beijing-urges-chinese-ev-makers-avoid-investments-countries-india-and-turkey
Chinese EV makers’ drive to go global hit a snag after Beijing urged them to avoid investing in countries like India and Turkey
Chinese electric-vehicle (EV) makers’ drive to go global hit a snag after Beijing urged them to avoid investing in countries like India and Turkey.
The Ministry of Commerce convened executives from more than a dozen electric car makers in July, under so-called “window guidance”, to discuss the risks of building plants abroad, according to Bloomberg.
Two industry officials with knowledge of the situation confirmed the meeting took place and said the ministry told carmakers to better protect their assets and technology as they ramp up their expansion overseas.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
In mainland China, authorities use window guidance to give verbal or written instructions to companies on government policy. Generally, companies that fail to comply with policy directions delivered via window guidance will not be punished in accordance with the country's rules and laws.
During the meeting, the EV makers were encouraged to focus on knock-down assembly lines - where key components are produced at home before being shipped overseas where they are assembled closer to the consumption markets - rather than setting up supply chains and large-scale facilities outside the mainland.
They were also told not to make any investments in countries like India and Turkey, the sources said.
The commerce ministry did not respond to queries by the Post on Thursday.
The sources said the guidance arose from policymakers' concerns about Beijing's rising tensions with certain countries where Chinese businesses and products could be boycotted by local authorities and consumers. In addition, government officials are worried about the risk of Chinese technology being stolen by foreign counterparts.
"The instructions [by the ministry] are interpreted as a warning to the companies since they are now actively looking to raise manufacturing capacity in markets such as Southeast Asia and some European countries," said Chen Jinzhu, the chief executive of Shanghai Mingliang Auto Service, a consultancy. "It may cause some of the companies to slow down their overseas plant building pace."
Chinese EV makers and vendors in the automotive supply chain are at the global vanguard because they have capitalised on core technologies for batteries, self-driving and in-car entertainment, according to David Xu Daquan, the China president of Bosch, the world's largest automotive supplier.
The mainland is also the world's largest EV market, where sales of pure electric and hybrid cars represented 65 per cent of the global total in the first half of this year, according to the China Passenger Car Association.
However, EV makers from BYD - the world's largest electric car maker - to start-up Hozon New Energy Automobile are running into trade barriers set up by developed economies.
In May, the White House quadrupled tariffs on Chinese-made EVs, which now stand at 100 per cent.
Last month, the European Union said additional duties of 9 to 36.3 per cent would be applied to EVs imported from China, 11 months after it launched an anti-subsidy investigation into battery-powered cars assembled on the mainland.
A number of companies from BYD to Great Wall Motors are aggressively expanding production abroad with plans to build electric cars in or close to consumption markets as a way of avoiding high tariffs.
https://www.ft.com/content/bf1e6817-5313-4b6e-8e47-9e2960d30ecc
Chinese electric-car maker BYD’s expected expansion into Pakistan has raised hopes in the country that the Warren Buffett-backed company can help jump-start exports in the automotive manufacturing sector. Pakistan’s biggest private electricity producer Hub Power (Hubco) said last month that its subsidiary Mega Motor was entering a partnership with the Tesla rival to set up the country’s first electric vehicle assembly plant by 2026. BYD’s Pakistan plan would mark the company’s first venture into south Asia after being blocked in India by Prime Minister Narendra Modi’s government, which has restricted Chinese investment. Hubco’s chief executive Kamran Kamal said in an interview with the Financial Times that the ultimate goal was for Pakistan to start exporting vehicles from the plant near Karachi’s Port Qasim. “We have big ambitions to be the leading carmaker in this country by the end of the decade,” said Kamal. “For any industry in Pakistan to be competitive, they should be focused on the export market.” Pakistan’s finance minister Muhammad Aurangzeb said the government was encouraging BYD to export to markets in Africa and south Asia, including Bangladesh and Sri Lanka. Trade between India and Pakistan has been reduced since 2019 after a security crisis between the two countries. “We want that Pakistan becomes an export hub, period,” Aurangzeb said in a separate interview with the FT. “Korean brands are here, the Japanese brands have been here . . . but the reality is we haven’t been exporting.” BYD said details of its Pakistan plans had yet to be formally announced and declined to comment further. The company’s expansion into south Asia comes as it is also establishing factories in Turkey, Hungary, Thailand and Brazil. BYD has also been scouting locations for a new factory in Mexico. The carmaker is expanding its manufacturing footprint beyond China as countries impose increasing tariffs on Chinese exports, including on EVs, solar panels and wind turbines. Tu Le, founder of consultancy Sino Auto Insights, said the aggressive international expansion plans would help BYD export to fast-growing markets despite tariffs in the US and Europe. But he warned that BYD should not expect the same “unfettered growth” the company has enjoyed in China as it learns to manage factories in different countries. “Chinese companies are used to having a lot of control. What they are going to find is that due to labour laws, different work ethics, different cultures, they’re going to have a lot less control than they normally would,” he said. Recommended The Big Read The ambitions of China’s BYD stretch well beyond electric vehicles Hubco is a joint venture partner for a number of Chinese power projects established under the China-Pakistan Economic Corridor, a $60bn infrastructure network that is part of Beijing’s Belt and Road Initiative. The company has no prior experience manufacturing vehicles but it aims to use its extensive power generation network to set up EV charging infrastructure throughout the country of 240mn people, Kamal said. The exact size of the investment and the types of models that will be assembled in the Karachi plant “are being discussed”, he said. Hubco said it expected to sell 100,000 BYD plug-in hybrid and fully electric cars in Pakistan a year by 2030, representing about a quarter of total cars sold in Pakistan, according to the company’s estimates.
By Wang Yi
https://www.globaltimes.cn/page/202409/1320242.shtml
Pakistan's biggest private electricity producer Hub Power (Hubco), a joint venture partner for a number of Chinese power projects established under the CPEC, said that its subsidiary Mega Motor was entering a partnership with the Tesla rival to set up the country's first EV assembly plant by 2026, the Financial Times reported on Sunday.
Pakistan's Federal Minister for Finance and Revenue Muhammad Aurangzeb said the country is encouraging BYD to export to markets in Africa and South Asia, including Bangladesh and Sri Lanka, according to the report. "We want Pakistan to become an export hub," the official was quoted as saying.
As the global EV market continues to grow, BYD's planned facility in Pakistan not only marks a crucial business step for the company to increase its presence in the South Asian market, but also signals the strengthening industrial cooperation between China and Pakistan in the new-energy sector under the CPEC.
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Pakistan's demand for new-energy vehicles (NEVs) is growing, especially against the backdrop of accelerated urbanization and heightened environmental awareness. The prospects of its NEV market are becoming increasingly attractive.
Pakistan targets an EV market share of 30 percent by 2030 and 90 percent by 2040 in total vehicle sales. The country offers lucrative investment opportunities for manufacturers, assemblers and suppliers, according to media reports.
If BYD implements its cooperation plan in Pakistan as reported, it will be well-positioned to tap the potential of this promising market, bolstered by a large young population and a growing middle class. Additionally, the company stands to benefit from Pakistan's ambition to promote green growth and expand exports to other economies across South Asia.
Meanwhile, BYD's entry into Pakistan's EV production sector is expected to greatly advance and strengthen the local EV industry. This move will enhance the automotive supply chain, stimulate growth in related sectors such as battery manufacturing and charging station infrastructure, create jobs and boost exports.
China and Pakistan's efforts to enhance their industrial chain and trade cooperation in new-energy sectors, particularly in EV manufacturing, hold significant importance for the continued development of the CPEC and regional economic integration.
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China and Pakistan have recently agreed to enhance the CPEC by building an upgraded version that includes several corridors: the growth corridor, livelihood-enhancing corridor, innovation corridor, green corridor and open corridor. These initiatives are designed to align with new economic development needs and serve as new growth drivers for both economies.
A key focus of this upgraded CPEC is industrial cooperation, which holds significant potential for both nations. Pakistan's traditional industries are primarily labor- and resource-intensive. By leveraging China's capital and technologies, Pakistan can achieve industrial upgrading and accelerate its economic development. In June, the two countries signed four documents to strengthen industrial cooperation.
Among the above-mentioned corridors, the green corridor is particularly noteworthy due to its alignment with global trends of the green transition and Pakistan's national conditions. New-energy projects under this corridor can address Pakistan's energy demands.
Partnerships with China's leading EV manufacturing industry can enable Pakistan to enhance its manufacturing sector and boost exports. This collaboration has the potential to transform Pakistan's labor and resource advantages into sustainable economic growth.
The author is a reporter with the Global Times.
https://www.rff.org/publications/explainers/electrification-101/#:~:text=Electrification%20refers%20to%20the%20process,the%20impacts%20of%20climate%20change.
By Ryan Cooper, managing editor at The American Prospect, and author of the book "How Are You Going to Pay for That?: Smart Answers to the Dumbest Question in Politics."
No need for expensive imported fuel when your energy is coming from the sun.
https://heatmap.news/economy/pakistan-solar
Pakistan imported a whopping 13 gigawatts of solar panels, mostly from China, in just the first half of 2024, mostly for rooftop installations for homes and businesses. That’s a mind-boggling amount of new solar for a country that only had about 50 gigawatts of installed generation capacity in total in 2023.
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Fuel imports are one of the largest expenses for even prosperous countries. For places like Pakistan, they are a punishing economic drain. Paying for vast amounts of imported coal, gas, and oil in scarce foreign currency is hard enough in good times, but it’s disastrous when one’s currency has depreciated by about 40% over two years.
Dirt cheap solar power could ameliorate or solve many of these problems at a stroke. Panels are now so cheap, even Pakistan can afford to import them by the millions — an expense, yes, but a one-time one. And while solar is inherently intermittent, and therefore not a solution to Pakistan’s reliability problems, batteries are also plummeting in price — down about 90% between 2010 and 2023 — and can help balance out supply. Cheaper batteries also mean cheaper EVs, with (as usual) Chinese models coming out at bewilderingly low prices. And because Pakistanis mostly drive motorcycles (often manufactured domestically) over relatively short distances, electrifying the personal vehicle fleet there will be far cheaper than in America or Europe; vastly smaller batteries require vastly simpler charging infrastructure.
If all goes well, this will free up vast amounts of economic capacity for Pakistan to invest in domestic development. Businesses will have stable, reliable power supplies that will justify more investment. Households will be able to upgrade their insulation, install heat pumps, and generally spend more on things other than energy. The government will be able to upgrade legacy transmission lines to accommodate solar production from the remaining hydro and nuclear plants.
Finally, of course, there is the climate benefit. Pakistan is one of the countries most threatened by climate change. Summer heat waves are bad and getting worse, to the point where murderous wet bulb events are increasingly likely. Catastrophic warming-fueled storms in 2022 caused the worst flooding in the country’s history, inundating about a third of Pakistan’s land area, killing nearly 2,000 people and causing billions of dollars in damages.
In short, a path to economic development will be opened. It is by no means guaranteed, but it will be a heck of a lot easier than trying to dig out from under the debt mountain of the collapsing coal-powered system. Look around the developing world and you’ll find there are a great many nations in similar situations.
https://www.evwind.es/2024/10/02/pakistan-emerged-as-second-largest-market-for-chinese-photovoltaic-products/101434
Pakistan has emerged as a significant new market for Chinese photovoltaic (PV) companies, aligning with its path toward energy transformation.
According to statistics from the China Photovoltaic Industry Association (CPIA), in the first half of 2024, Asia overtook Europe as the largest export destination for PV products and Pakistan has become the second-largest market for module exports after Europe.
During the same period, China exported inverters worth a total of RMB 1.714 billion to Pakistan. In August alone, the total value of inverter exports to Pakistan reached 326 million yuan, showing a year-on-year surge of 429.04%. And shimmering blue panels now sit atop a vast array of factories, households, hospitals and mosques.
The surge in exports of photovoltaics and supporting products reflects the urgency of turning to new energy power generation in Pakistan, China Economic Net reported on Tuesday.
“Electricity prices continue to rise; thus, people are trying to find their own way out,” Abbas a Pakistani trader said at the Investment and Trade Forum for Cooperation between East and West China.
As of June 2023, the installed capacity of solar power in Pakistan stood at 630 megawatts, namely 1.4% of the overall installed power capacity, which has a huge room for improvement.
In terms of natural conditions, according to the World Bank’s Global Solar Atlas data, taking Balochistan with good lighting conditions as an example, the average annual total photovoltaic output power of a 1KW household photovoltaic system can reach 1990kWh (corresponding to approximately 1990h of sunlight), which is approximately 41% and 59% higher than New Delhi, India and Shandong Province, China, respectively; the Global Tilted Irradiance (GTI) can reach 2536.5KWh/square meter, which is approximately 36% and 61% higher than New Delhi, India and Shandong Province, China respectively.
In terms of policies, for the past few years, the Pakistani government has highly supported the development of renewable energy, setting a strategic goal of increasing the share of renewable energy and alternative energy in Pakistan’s electricity market to 20% by 2025 and to 30% by 2030.
The IGCEP2047 released by NEPRA showed that Pakistan’s PV installed capacity will achieve leapfrog growth in the next few years. It is expected that by 2030, the PV installed capacity will reach 12.8GW, and by 2047 it is expected to reach 26.9GW. According to calculations, in order to achieve the 2030/2047 goals, the average annual new PV installed capacity needs to reach 1.65/1.07GW respectively.
Businesses in Pakistan are racing to cover their factory rooftops with reasonably priced Chinese solar panels. “Every bit of space I have, even if it’s a few feet, I want it covered in solar panels,” said Khawaja Masood Akhtar, chief executive of Forward Sports, whose factory is one of the world’s largest makers of footballs. His company had already doubled the level of solar in its energy mix to 50% over the past two years. Akhtar is now ploughing a chunk of last year’s profits into importing another haul of panels from China to lift the share of solar supply to his operations to 80% by next April.
https://www.reuters.com/business/energy/pakistans-biggest-private-utility-says-govt-power-deal-ends-prematurely-2024-10-10/
Government to save 411 billion rupees
Negotiations with more power producers underway
IMF bailout talks influenced decision to revisit power deals
KARACHI, Oct 10 (Reuters) - Pakistan's government has ended power purchase contracts with five private companies, including one with the country's largest utility that should have been in place until 2027, to cut costs, officials said on Thursday.
The news confirms comment from Power Minister Awais Leghari to Reuters last month that the government was re-negotiating deals with independent power producers to lower electricity tariffs as households and businesses struggle to manage soaring energy costs.
"We studied these agreements and we decided what plants we need and what plants we don't need," Leghari told a news conference in Islamabad on Thursday, adding the termination of the take or pay agreements will save the nation nearly 411 billion rupees ($1.48 billion) in the coming years.
Take or pay is referred to as capacity payments in Pakistan where the government has to pay private companies irrespective of how much of the power they generate is transferred to its grid.
Negotiations have also begun with other power producers to revise their contracts, Leghari said, adding people would soon see the impact in their monthly bills.
"Our aim is to bring the tariff down," he said.
The need to revisit the deals was an issue in talks for a critical staff-level pact in July with the International Monetary Fund (IMF) for a $7-billion bailout.
Earlier on Thursday Prime Minister Shehbaz Sharif said Pakistan has agreed with five independent power producers to revisit purchase contracts. He said that would save the country 60 billion rupees a year.
Pakistan's biggest private utility, Hub Power Company Ltd (HPWR.PSX), opens new tab, also said the company agreed to prematurely end a contract with the government to buy power from a southwestern generation project.
In a note to the Pakistan Stock Exchange, it said the government had agreed to meet its commitments up to Oct. 1, instead of an initial date of March 2027, in an action taken "in the greater national interest".
https://finance.yahoo.com/news/pakistan-aims-slash-power-prices-110800128.html
(Bloomberg) -- Pakistan is looking to stimulate demand for electric vehicles by reducing power prices at charging stations, as the country attempts to kickstart the decarbonization of its transport sector.
The South Asian nation will create demand “by bringing down drastically the prices for new sectors including EVs,” Power Minister Awais Leghari said in an interview. The government is discussing a pricing structure and the incentive would apply to all charging and battery swapping stations for small cars, two-wheelers and three-wheelers, he added.
More than half a dozen auto companies, led by Chinese brands, have launched EV models in Pakistan this year. Chinese EV maker BYD’s local partner Hub signed an agreement with the country’s largest fuel retailer, Pakistan State Oil, this month to jointly establish an EV charging network across the nation.
Meanwhile, the country has seen a drop in electricity demand while prices have soared and the government has had to secure loans from the International Monetary Fund.
As part of the $7 billion loan requirements, the government is working on a flurry of reforms to restore the energy sector’s viability. The nation is in talks to revise purchase contracts with local power companies and reprofiling debt with Chinese lenders.
Prime Minister Shehbaz Sharif’s administration also wants to move away from the existing model of the government being the sole buyer of electricity, and create a wider market, Leghari said.
The independent market operator system will be functional by March and broader trade is expected to pick up within a year, he said.
https://youtu.be/LT5UdLGy8fM
https://www.dw.com/en/deep-dive-the-hidden-solar-revolution-that-stumped-experts/audio-70856809
A little while back, energy analysts noticed something weird in the data they were combing through.
Pakistan’s national electricity grid data that is. There seemed to be a huge drop in demand for electricity. A drop of 10 percent since 2022. For a rapidly growing country of 250 million people, where the economy has also grown by 2 percent in the past two years, that just didn’t seem right.
Dave Jones: You just wouldn't expect that of an emerging country.
Dave Jones is one such energy analyst who was pretty puzzled by this trend.
Dave Jones: I work at a research organization called EMBER and I track the global electricity transition, heading up our global insights team and I'm based near London in the UK.
Dave and his team realized that just looking at Pakistan’s national grid data wasn’t going to give them all the answers. Because the electricity was coming from somewhere else.
It was coming from rooftops. Rooftops like Shafqat’s. And that kind of solar electricity generation wasn’t being captured in national statistics. It wasn’t really being recorded anywhere.
Dave Jones: And we heard stories about a lot of solar being deployed. So that's when we thought, right, there's probably a hole in the solar data here.
So, first things first, when you’ve got a hunch it could be solar, but there aren’t many hard datasets around, head to Google Earth to see for yourself.
Dave Jones: Oh my God, I had a lot of fun going through Google Earth! It was really hypnotizing just floating around and being able to see all of these solar panels from the satellite images that they have. And it's not on one or two houses in certain areas, like whichever urban area you went to, whether it was a house or block of flats or whether it was a factory or government building, you could see those solar panels on the image everywhere.
I had a look too, and Dave’s right, float over Islamabad Larkana, Lahore... and you’ll see the unmistakable little checkered grids atop homes, businesses, buildings big and small, left, right and center.
Dave Jones: It was unbelievable. Just the amount of solar panels on so many buildings spread throughout the whole of the country.
But how to find out just how much solar had made its way to Pakistan?
Dave Jones: Tracking how solar is developing and being deployed in different parts of the world is extraordinarily hard. A lot of the government stats are really delayed or even non-existent.
The renewable shift is happening so rapidly and, sometimes, randomly, most governments can’t track how much power is coming from where quickly enough to crunch official statistics.
There is one country with a very useful, up-to-date dataset though.
And that is China. The world’s number one manufacturer of solar PV modules.
Dave Jones: We also track the Chinese export agency data, which tags the solar panel exports for every country in the world up to the latest month. So really up to date data for over 100 countries across the world, and specifically in the case of Pakistan, it revealed that Pakistan was the sixth biggest installer of solar panels across the world. Which is quite a surprise!
The sixth biggest installer of solar panels in the world in 2024. That’s behind much bigger, much richer economies like China, the US, Germany, India and Brazil. And, obviously, ahead of nearly 190 other countries. That is huge news for Pakistan.
And the reason that can even happen of course is because of the incredible drop in the price of solar technology.
Dave Jones: It's come to that point now that for daytime electricity, it is a no brainer for people in Pakistan to go out there and to be doing this on the scale that they're doing it.
The price of solar PV modules has plummeted by 90% in the last 15 years alone.