Pakistan’s banking sector has agreed to support electric vehicle (EV) adoption through affordable consumer financing. The decision came during a high-level meeting organized by the Ministry of Climate Change and Environmental Coordination. Officials from the State Bank, commercial banks, EV manufacturers, and government bodies participated. They pledged to develop solutions that make EVs more accessible to the public.
The meeting was chaired by MoCC&EC Secretary Aisha Humera Moriani, who stressed that banks must offer attractive and practical loan plans. Without affordable financing, she said, most households won’t be able to switch to electric vehicles. The session also led to the creation of a joint working group tasked with crafting targeted green financing proposals.
Pakistan Banking Association Chairman Zafar Masud, also head of the Bank of Punjab, highlighted a successful financing model already in place. Under a youth initiative with the Punjab government, the bank is distributing 18,000 motorcycles, including 5,000 e-bikes, to students via interest-free installment plans. Masud noted that the program could be expanded to other provinces.
Officials also discussed larger policy reforms to boost EV competitiveness. These include higher taxes on old fossil fuel vehicles and the implementation of Pakistan’s new Green Taxonomy Framework, approved on July 25. This framework allows banks to create special green loans for sustainable projects, including EVs. DG Muhammad Asif Sahibzada confirmed that the taxonomy is now active.
Experts pointed out that EVs could have a major impact on urban air quality. Cities like Lahore, Karachi, and Islamabad face severe pollution. Urban Affairs Director Muhammad Azim Khoso said EVs, which produce zero tailpipe emissions, could reduce health costs and environmental damage. The newly formed working group will now build actionable strategies to finance and promote electric mobility nationwide.