EV Sector Investment Pitchbook (English Version)

Following are the key highlights of the Pitchbook compiled for investors from around the world especially China, who are interested in EV sector of Pakistan. 

1. Country Investment Environment - Pakistan has a reformed and stabilized economy with improved credit rating, low inflation, and business-friendly regulations. - Established **SIFC** as a one-stop window for investment facilitation and policy support. - Favorable demographics: 255 million population, 64% under 30, large young workforce and talent pool. - Long-term policy stability, profit repatriation assurance, and strong legal & contract enforcement. - Special Economic Zones (SEZs) offer **10-year tax holidays** and fiscal incentives. 2. **China-Pakistan Trade & Investment Ties** - Strong cooperation under **CPEC** and China-Pakistan Free Trade Agreement (CPFTA). - Multiple Chinese firms (BYD, Yutong, ADM Group) have launched large-scale FDI projects in Pakistan. - Duty-free access for raw materials and favorable trade terms for Chinese investors. 3. **Automotive Sector Overview** - Domestic market size exceeds **USD 2.5 billion**, with ~500 vendors and 3 million employees. - Dominated by 2/3-wheelers and compact 4-wheel passenger cars. - High localization for motorcycles (90%) and cars (60%), but low for high-tech parts. 4. **EV Policy & Targets** - National policy aims for **30% EV sales share by 2030** and 90% electrification of 2/3-wheelers by 2040. - Target: ~3.5 million EVs (2W/3W/4W) to be registered by 2030. 5. **Current Industry Gaps** - Full reliance on imports for **EV battery cells, motor controllers, and ECUs**. - Limited local EV assembly and almost no integrated charging infrastructure. - Underdeveloped component manufacturing for high-value EV parts. 6. **Key Investment Opportunities** - Compact car assembly for local and regional export markets. - Lithium battery pack assembly and integration. - Local production of 2/3-wheelers (EV & traditional). - Assembly of compact EVs and hybrid 4-wheelers. - EV charging and battery-swapping infrastructure. - Manufacturing of motor controllers, ECUs, and power electronics. - High-strength components for tractors and trucks. 7. **Incentives for Investors** - **100% foreign equity** allowed; fast-track approvals via SIFC. - **1% customs duty** on EV parts (battery, motor, controller) until June 2026. - Reduced sales tax: 1% for 2/3-wheelers, 8.5% for hybrid 4-wheelers. - Direct consumer subsidies for EV purchases. - Low utility tariffs in SEZs (USD 0.035–0.05/kWh for electricity). 8. **Strategic Advantages** - Proximity to China, GCC, Africa, and Central Asia via CPEC and three major ports. - Lower labor and operational costs compared to regional peers. - Strong existing automotive ecosystem and growing global player participation.