By Staff Reporter
ISLAMABAD: Finance Minister Muhammad Aurangzeb on Saturday hailed the launch of BYD, the world’s leading new electric vehicle manufacturer, in Pakistan as a testament to the government’s commitment to creating an environment conducive to economic growth led by the private sector.
“We believe that private sector investment, export-led development, and foreign direct investment are key drivers of economic growth,” Aurangzeb said, welcoming the investment by BYD, which plans to open a car production plant in Pakistan by 2026.
The Chinese electric vehicle giant has partnered with Mega Motor Co., a unit of Hub Power Co Ltd (Hubco), to sell three models in Pakistan, including two SUVs – the BYD Tang and BYD Song – and a sedan, the BYD Han. Hubco will set up fast-charging stations across major cities, motorways, and highways to enhance the country’s charging infrastructure, which is currently lacking.
Aurangzeb emphasized the government’s focus on macroeconomic stability, structural reforms, and international trade to attract investors and drive regional economic growth. “The recent investment by BYD in Pakistan’s automotive sector is a shining example of private sector-led growth,” he said, encouraging BYD to make Pakistan a hub for exports. “We are committed to providing all necessary support to BYD and other investors to ensure their success in Pakistan.”
The finance minister also pledged government backing for green technology initiatives. “BYD’s entry into our market is not just about introducing new vehicles, it’s about embracing a sustainable future,” he added, highlighting the government’s goal of achieving energy efficiency and reducing carbon emissions. “We aim to increase the share of electric vehicles in Pakistan’s market to 30 percent by 2030.”
Liu Xueliang, General Manager of BYD Asia Pacific Auto Sales Division, expressed enthusiasm about the company’s expansion into the Pakistani market, stating that BYD is proud to be at the forefront of the sustainable future transformation.
“Our entry into the Pakistan market is not just about bringing advanced vehicles to consumers,” Liu said. “It’s about driving a broader vision of environmental responsibility and technological innovation. We are committed to working with the government and other stakeholders to promote sustainable transportation solutions in Pakistan.”
BYD plans to open three “flagship stores and experience centres” in Karachi, Lahore, and Islamabad, and start selling vehicles from the fourth quarter of 2024. The company aims to capture a significant share of Pakistan’s growing electric vehicle market, which is expected to reach 50,000 units by 2025.
The investment comes as Pakistan seeks to revive its fragile economy, which has faced significant challenges recently, including a balance of payments crisis, high inflation, and a decline in foreign exchange reserves. However, the government has taken steps to stabilize the economy, including securing a bailout package from the International Monetary Fund (IMF) and implementing structural reforms.
The government is also focusing on increasing high-tech exports and reducing trade imbalances, and Aurangzeb highlighted the potential for BYD’s presence to enhance Pakistan’s export potential in the burgeoning electric vehicle market.
“The presence of a major global player like BYD could enhance Pakistan’s export potential in the electric vehicle market, aligning with national strategies to increase high-tech exports and reduce trade imbalances,” he said.
Aurangzeb emphasized the need for collaboration between the government and industry stakeholders to drive innovation and sustainability. “The government and the industry stakeholders should work together to introduce innovations that can contribute to the country’s sustainability goals and economic stability in the coming years.”
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