Pakistan’s Ministry of Climate Change and Environmental Coordination (MoCC and EC) convened a high-level meeting with the State Bank of Pakistan and commercial banks to discuss financing options for electric vehicles (EVs), aiming to accelerate the nation’s shift towards sustainable transportation.

The MoCC and EC spokesperson, Mohammad Saleem Shaikh, disclosed in a statement that the banking sector pledged to explore consumer financing facilities to support the government’s commitment to electric mobility. A working group comprising bank representatives, EV manufacturers, importers, and government officials will formulate proposals for green financing options.

The meeting, led by MoCC and EC Secretary Aisha Humera Moriani, also deliberated on strategies to phase out older, fuel-dependent vehicles through taxation. Ms. Moriani stressed the vital role of affordable financing in EV adoption, urging banks to develop attractive plans. She emphasized that progress in mitigating transport emissions hinges on the banking sector’s proactive involvement.

Pakistan Banking Association (PBA) Chairman Zafar Masud assured the ministry of the banking sector’s cooperation in developing viable financing schemes. He highlighted the Bank of Punjab’s collaboration with the Punjab government to provide interest-free loans for electric and petrol bikes to students, a model he suggested other provinces could emulate.

Ms. Moriani encouraged other provinces, especially Sindh, to replicate Punjab’s initiative. She also recommended that EV manufacturers explore offering financing options directly to consumers.

MoCC and EC Director General Muhammad Asif Sahibzada noted the recent approval of the Green Taxonomy Framework, designed to promote sustainable investments. He urged banks to utilize this framework to create green loan schemes for EVs.

Director (Urban Affairs) Muhammad Azim Khoso underscored the benefits of EVs in reducing urban air pollution, particularly in cities like Lahore, Karachi, Rawalpindi, and Islamabad, which are among the world’s most polluted. He highlighted the positive impact on public health through improved air quality.