EVs unit, charging stations by Chinese co: MoC directs removal of impediments to $250m potential investment

ISLAMABAD: The Commerce Ministry has urged concerned ministries to remove obstacles in potential investment of $ 250 million by a Chinese firm in two projects including establishment of Electric Vehicles (EV) charging stations and EVs manufacturing facility in Pakistan, well-informed sources told Business Recorder.

The Commerce Ministry, in a letter to the Secretaries of four Ministries, shared a letter of Consul General, Shanghai, Shehzad Ahmed Khan to Secretary BoI and Secretary Commerce.

During the recent visit of the Commerce Minister, Jam Kamal and Minister for Privatisation and Investment to Shanghai followed by a Zoom meeting jointly chaired by both Ministers on June 10, 2024 directions were issued to seek investment in export-related sectors, with EV being one of the important sector for manufacturing in Pakistan and subsequent exports.

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Consul General, in his letter stated that in order to have investment flow to Pakistan, the government needs to facilitate the existing investment projects in the pipeline in these sectors so as to generate success stories for new companies to finalize their decisions for investments in Pakistan. One such case of EV investment from YRD region is of M/s ADM Group whose investment, after materializing of the entire project, will be around $ 250 million.

M/s ADM Group is a reputable investment company with a diverse portfolio. They have made significant investment in various sectors including hospitality, hotels, trading, import and export, real estate worldwide and now entering in the field of manufacturing of EVs. Their expertise and commitment to contribute to Pakistan’s development make them invaluable partner for economic progress.

Currently, M/s ADM Group has earmarked two major investment projects in Pakistan, totaling around $ 250 million. The first project involves the establishment of an EV charging station network throughout the country. This project requires a budget of $ 100 million and aims to install 3000 charging units countrywide. The second project entails setting up an EV manufacturing facility with an investment budget of $ 150 million. These projects are of strategic importance and have the potential to create substantial economic and employment opportunities for Pakistan.

However, three projects are facing significant hurdles that necessitate immediate attention and resolution. One of the primary challenges lies in securing permission from local petrol station operators including “Pakistan State Oil,” Shell and others, to install charging stations at their premises. Despite offering financial benefits and incentives, M/s ADM Group had encountered delays and difficulties in obtaining the necessary approvals. As a result, the initial shipment of charging units which arrived in Pakistan in January, 2024 is currently stored in their warehouse, generating no return on investment.

In this regard, Pakistan’s Mission in Shanghai has sought assistance in collaboration with the Petroleum Division and Power Division to facilitate the installation of EV charging units at petrol stations.

“By resolving this issue and expediting the necessary approvals, M/s ADM Group can overcome the current obstacles and ensure the successful completion of their first project within the agreed timeframe,” he added.

Consul General argued that once completed, this milestone will pave the way for the second phase of the investment, involving the establishment of an EV manufacturing facility in Pakistan. This subsequent investment of $ 150 million will not only contribute to the growth of the EV industry but also attract additional foreign direct investment in this sector, fostering economic development and technological advancements within Pakistan.

Furthermore. M/s ADM Group plans to launch own brands of EVs in Pakistan. Their partnership with a local manufacturer includes a technology sharing commitments, enabling the transfer of technology and the commencement of EV manufacturing within Pakistan after five years of successful EV assembling in Pakistan.

Consul General also raised another important matter regarding the draft EV charging station policy, saying that the current draft includes a requirement that EV charging piles must be purchased with EU and USA standards. However, many EV charging piles sold in the USA and EU are made in China and are also utilized globally. Therefore, he requested Secretary Board of Investment to urge the concerned Ministry to consider allowing goods made with Chinese standards to be permitted in Pakistan as well.

He maintained that since the policy is still in the draft stage, there is an opportunity to make amendments and ensure equal opportunity for all manufactures across the globe.

“An immediate resolution to address the challenges faced by M/s ADM Group in their investment projects will not only materialize this investment in the pipeline but also pave the way for future investments in the EV sector contributing to Pakistan’s economic growth, create employment opportunities and promote technological advancements,” said the Consul General.

Copyright Business Recorder, 2024