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Plugging into the EV dream

By Dr Muhammad Zeshan
Mon, 09, 24

Prime Minister Shehbaz Sharif has directed authorities to create a comprehensive financial plan for electric vehicles (EVs) by November and simplify licensing rules for their production in Pakistan.

Plugging into the EV dream

Prime Minister Shehbaz Sharif has directed authorities to create a comprehensive financial plan for electric vehicles (EVs) by November and simplify licensing rules for their production in Pakistan.

Pakistan’s auto industry is stuck in second gear. We’re assembling cars designed decades ago while the world zooms ahead with electric and autonomous vehicles. But here’s the kicker – the EV revolution could be our chance to leap from laggard to leader.

Why? Because EVs are reshuffling the entire automotive deck. Traditional auto giants are scrambling to reinvent themselves, while newcomers are disrupting the industry left and right. It’s a whole new ballgame, and Pakistan has a chance to step up to the plate.

Now, before you start picturing Pakistani Teslas rolling off assembly lines, let’s get one thing straight – the EV value chain is about way more than just final assembly. It’s a complex ecosystem of components, software, services, and infrastructure. And that’s where our real opportunity lies.

Think about it. EVs need batteries -- lots of them. They need specialized electronics, lightweight materials, and sophisticated software. They need charging infrastructure and smart grid technologies. Each of these is a potential entry point for Pakistan into the global EV value chain.

Pakistan could become the brains behind the global EV revolution. No, I’m not talking about designing entire autonomous driving systems (though why not dream big?). I’m talking about the myriad software components that make modern EVs tick.

We’ve already got a booming IT sector. Why not channel that talent into EV-specific software development? From battery management systems to user interfaces, from predictive maintenance algorithms to charging optimization software – the opportunities are endless.

Imagine Pakistani-developed software running in millions of EVs worldwide. It’s not just coding – it’s about positioning ourselves at the cutting edge of the automotive future.

Now, let’s talk components. EVs might have fewer moving parts than traditional cars, but they’re packed with specialized components. Electric motors, power electronics, thermal management systems – each of these is a potential niche for Pakistani manufacturers.

We don’t need to build entire cars to be part of the EV revolution. By focusing on specific, high-value components, we can plug into global EV value chains without biting off more than we can chew. It’s about finding our niche and owning it.

Here’s a curveball for you – some of the biggest opportunities in the EV value chain aren’t in vehicles at all. They’re in the infrastructure that supports them. Charging stations, smart grid technologies, battery recycling facilities -- these are all crucial parts of the EV ecosystem.

Why can’t Pakistan become a hub for EV infrastructure development? We could be designing and manufacturing charging stations for the entire region. We could be pioneering smart grid solutions that balance EV charging loads. We could be developing innovative battery recycling technologies that give used EV batteries a second life.

Now, I can hear the sceptics already. “We can’t even make reliable petrol cars, and you want us to jump into EVs?” Fair point. The road to EV success is full of potholes. We’ve got skills gaps to fill, infrastructure to build, and policies to overhaul.

But here’s the thing – these challenges are also opportunities. We need a massive upskilling programme? Great, let’s create a world-class EV workforce development system. We need to upgrade our power grid? Fantastic, let’s make it the smartest grid in the region.

Let’s be real -- none of this happens without smart government policies. We need targeted incentives for EV investments. We need R&D support for critical technologies. We need regulations that encourage EV adoption while protecting local industry.

It’s a delicate balance, but countries like China and India have shown it’s possible. With the right policy mix, we can catalyze an EV ecosystem that draws in both domestic and foreign investment.

Here’s a wild idea – what if we could turn our brain drain into an EV gain? We’ve got talented Pakistanis working in automotive and tech companies around the world. Imagine harnessing that expertise, those connections, to jumpstart our EV industry.

We’re not just talking about luring them back (though that would be nice). We’re talking about creating a global network of Pakistani EV experts, a brain trust that can guide our leap into the electric future.

The global EV revolution is happening, with or without us. We can watch from the sidelines as others reap the benefits, or we can jump in and claim our piece of the pie.

It won’t be easy. We’ll need vision, investment, and a whole lot of hard work. But the potential rewards? They’re electrifying. A revitalized auto industry. High-skilled jobs. Export opportunities. A cleaner, greener Pakistan.

The future is electric. Pakistan, it’s time to turn the key and start our engines. The race to the EV future is on – are we ready to put the pedal to the metal?


The writer is head of research group, Trade, Industry & Productivity (TIP) at the Pakistan Institute of Development Economics (PIDE), Islamabad.