THE government’s focus on making vehicles affordable for the middle class is both timely and commendable.
Prime Minister Shehbaz Sharif’s intent, as articulated by the CEO of the Engineering Development Board, Hammad Ali Mansoor, signals a pragmatic approach to addressing one of the most pressing challenges facing ordinary Pakistanis: Mobility in an era of soaring fuel costs.
Under the upcoming auto policy, small electric vehicles (EVs) are expected to hit the market in completely built-up form in Karachi during the third quarter, initially priced at under one million rupees. This is a welcome move, as it promises to bring sustainable and cost-effective transport within the reach of the common man. By combining reduced duties on vehicles with easier access to bank financing, the government can make this vision a reality, turning what might seem a lofty aspiration into tangible, everyday convenience for citizens. The timing could not be more crucial. With the ongoing crisis in the Middle East driving global fuel prices upward, reliance on imported petrol and diesel has become an increasing strain on both households and the national economy. Promoting small electric vehicles not only provides a relief valve for middle-class buyers but also strategically reduces dependence on imported fuel. Beyond economic relief, this shift has an environmental dimension: Greater adoption of EVs can contribute significantly to lowering urban pollution and improving public health, a benefit that will be felt for generations. Yet affordability and sustainability alone are not enough.
To truly transform Pakistan’s automotive sector, the new auto policy must prioritize complete local manufacturing rather than mere assembly. Encouraging domestic production of vehicles and auto parts will strengthen local industry, create high-value jobs and reduce reliance on imports. By supporting small and medium enterprises in auto parts manufacturing, we can build a robust supply chain that benefits the broader economy. Moreover, developing an integrated domestic automotive industry presents an opportunity to position Pakistan as a hub for vehicle exports. With proper incentives, investment in technology and skilled workforce development, the country can tap into regional and international markets, turning its automotive sector into a source of sustained economic growth and global competitiveness.
