Islamabad, August 1, 2025 – In a major push toward sustainable transport, banks across Pakistan have pledged support for innovative financing solutions aimed at making electric vehicles (EVs) more accessible to the general public.
This development emerged during a high-level consultative meeting organized by the Ministry of Climate Change and Environmental Coordination (MoCC&EC). The meeting, chaired by MoCC&EC Secretary Aisha Humera Moriani, brought together more than 70 participants, including local EV manufacturers, importers, and senior officials from the Pakistan Banking Association (PBA).
Secretary Moriani stressed the importance of the banking sector’s active role in expanding financing options. “Without affordable consumer financing options, EV adoption will remain limited. We need collaboration between the public and private sectors,” she stated.
A major outcome of the session was the formation of a joint working group composed of banks, EV companies, and government agencies. This group will design actionable proposals for green financing mechanisms and recommend incentives to encourage EV usage at scale.
Zafar Masud, Chairman of the PBA and President of the Bank of Punjab (BoP), reaffirmed the commitment of banks to Pakistan’s green mobility goals. He referenced BoP’s recent partnership with the Punjab government under the Chief Minister’s Youth Initiative, which has rolled out 18,000 motorcycles—including 5,000 electric bikes—to students on interest-free installment plans.
Masud suggested expanding the initiative to other provinces such as Sindh, KP, and Balochistan. Secretary Moriani echoed the call and encouraged EV manufacturers to introduce direct financing programs similar to those offered by banks.
The meeting also touched on complementary policy efforts, including the potential imposition of higher taxes on older fossil fuel vehicles to encourage the shift toward electric alternatives.
MoCC&EC Director General Muhammad Asif Sahibzada announced that Pakistan’s first Green Taxonomy Framework had been approved by the Economic Coordination Committee on July 25. The framework outlines standards for environmentally sustainable investments, helping banks develop targeted green loan products for EV adoption.
Urban Affairs Director Muhammad Azim Khoso underlined the health benefits of EVs, especially in cities like Lahore, Karachi, and Islamabad—areas that frequently experience severe air pollution. “Electric vehicles, with zero tailpipe emissions, can play a crucial role in improving urban air quality and reducing long-term healthcare costs,” Khoso noted.