Pakistani officials have said they would facilitate China’s investments by offering land and resources. Credits: GettyImages/Oleksii Liskonih

A group of Chinese firms has pledged to invest $340mn in Pakistan’s electric vehicle (EV) sector to expand their manufacturing plants and charging stations, according to local news outlets. The investment was announced at a press briefing inaugurating a joint project between Malik Group and China’s ADEN Group.

“If the company manufactures EVs in Pakistan, the Sindh government will purchase over 20% of the vehicles produced at the Karachi plant,” Sindh province’s Energy Minister Syed Nasir Hussain Shah.

Malik Group chairperson Malik Khuda Bakhsh said 30 charging plants are set to be delivered from China in the next ten days. The project seems to be moving fast as Bakhsh added that Pakistan aimed to “have the necessary infrastructure operation by the end of this year.”

ADEN Group, which has its global headquarters in Singapore, is expected to invest $90mn for 3,000 charging stations and $240mn for an EV production facility.

“By December, EV production will begin, with an annual output target of 72,000 units,” ADEN Group CEO Yasser Bhambani said. “We also plan to export vehicles to the Middle East, Sri Lanka and Bangladesh.”

Recently, Pakistan experienced some positive FDI growth. In August 2024, data from the State Bank of Pakistan showed there had been a monthly rise in FDI compared to 2023. It received $136.3mn in net FDI in July 2024, marking a 64% increase compared to July 2023.

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However, FDI flows are still far from their peak in the early 2000s. A wave of political instability and a lacklustre economy has made it harder for the country to attract foreign investment.

Earlier this month, Pakistan was the first country to adopt the World Economic Forum’s Digital Foreign Direct Investment Initiative (DFDII) and the Digital Cooperation Organisation (DCO), Prime Minister Shehbaz Sharif announced.