China to Make Investment in EV Sector of Pakistan
Recently, China has decided to invest in Pakistan in the manufacturing of electric vehicles (EVs) and the agriculture sector in order to boost economic activity in the country. According to a senior official of the Board of Investment, investment in both areas will result in growth and new job opportunities. He stated that China’s Optima Integration Group has partnered with Pakistan’s Asia Pak Investments to spend $50 million in the first phase in Gwadar and Karachi’s agriculture, power, and logistics sectors. Furthermore, he stated that the Board of Investment (BoI) recently signed a memorandum of understanding (MoU) between the two companies in this regard, which will result in the creation of over 100 jobs in Gwadar and Karachi, as well as the establishment of a high-tech processing facility and technology transfer. In response to a question, he stated that the Gauss Auto Group, based in China, plans to build an electric vehicle (EV) plant in Pakistan’s Karachi Special Economic Zone (SEZs). According to the senior official, the company intends to form a joint venture (JV) with AKD Group Holdings to build the factory at Port Qasim, Karachi, on approximately 1000 acres of land. According to him, Gauss Auto is a company that focuses on vehicle invention and development as well as resource integration. Moreover, he said that Pakistan’s recently introduced Electric Vehicle Policy benefits both existing and new manufacturers. The leadership of the BOI encouraged Gauss Car Group to engage in Pakistan’s auto sector and provided the company with the best possible support and assistance. Future of EVs in Pakistan: Pakistan’s intention in this regard is to ensure that EV sales account for 30% of total sales by 2030, which is in line with the renewable energy ambition. Although it is unclear whether the 30% target can be met in all EVs, including four-wheelers. The reason for this is that there is a significant and expanding market for two-wheelers, both in terms of annual sales (two million units) and vehicle population (20 million). It’s also a straightforward technological solution as motorcycles account for 40% of Pakistan’s annual gasoline use. Check out? Affordable EVs will Come in 2027, as Announced by GM and Honda
