LUMS and Habib Bank Limited (HBL) have formalised a strategic partnership aimed at strengthening Pakistan’s transition toward sustainable transportation by developing commercial financing schemes for electric mobility solutions. The collaboration is centred on supporting LUMS’ upcoming initiative, Pakistan – Battery Swapping Network, which is designed to enable widespread adoption of electric three-wheelers through accessible and flexible funding mechanisms.
The memorandum of understanding reflects a shared commitment to accelerating the electrification of Pakistan’s transportation ecosystem by bridging crucial gaps between research, innovation, and industry-driven financing. With the transport sector contributing significantly to Pakistan’s urban air pollution and carbon emissions, this partnership intends to create commercial pathways for clean mobility and position electric vehicles, particularly three-wheelers, as financially viable alternatives to combustion-engine models.
The signing ceremony was held at LUMS in Lahore, attended by senior representatives from both institutions. Key participants included Omer Mallick, Product Head SME at HBL; Dr. Tariq Mahmood Jadoon, Provost at LUMS; and expert members from the LUMS Energy Institute (LEI) and HBL’s SME division. Their presence underscores the institutional importance placed on advancing Pakistan’s EV infrastructure and supporting local innovation in sustainable mobility.
The Pakistan – Battery Swapping Network is structured to introduce a scalable EV charging framework that eliminates range anxiety and reduces upfront ownership costs for electric three-wheelers. Battery swapping, a globally emerging solution for efficient EV utilisation, allows drivers to exchange depleted batteries for fully charged units within minutes, ensuring uninterrupted operations for commercial transport users and delivery fleets. By pairing this model with tailored financing products, LUMS and HBL aim to unlock uptake among local businesses, transport operators, and startups entering the e-mobility domain.
Highlighting the strategic value of the initiative, Dr. Naveed Arshad, Director of the LUMS Energy Institute, emphasised its role in stimulating private sector investment in charging and EV infrastructure. According to Dr. Arshad, the project will demonstrate the strong techno-economic viability of electric three-wheelers, showcasing their operational advantages over internal combustion-engine vehicles. He noted that this proof of concept has the potential to serve as a catalyst for transforming Pakistan’s road transportation sector and accelerating EV penetration across high-density urban centres.
Dr. Tariq Mahmood Jadoon shed light on the strong research foundation supporting this collaboration. He stated that LUMS has already established Pakistan’s first dedicated eMobility Research and Development Centre, equipped for testing and characterisation of EV motors, batteries, and core components. This facility, backed by the institution’s academic and engineering expertise, provides a critical platform for industry-academia cooperation and will play a central role in driving innovation and technical validation for the battery swapping network.
Representing HBL, Omer Mallick reaffirmed the bank’s commitment to sustainability-focused finance and technology-driven market growth. He explained that through support from the Mitigation Action Facility, the partnership will benefit from a first-loss guarantee mechanism, enabling HBL to offer subsidised, accessible, and SME-friendly financing solutions. This incentive structure is expected to empower private operators to deploy EV charging and swapping stations, contributing to a robust national ecosystem for electric mobility.
Pakistan’s adoption of electric mobility remains at a foundational stage, and the country’s target to lower emissions under the Paris Climate Agreement and Nationally Determined Contributions requires coordinated public-private action. By introducing commercial EV financing and proof-of-concept infrastructure, the LUMS-HBL collaboration marks a concrete step toward cleaner transport, reduced carbon output, and improved urban air quality.
As Pakistan explores new pathways for green innovation, this alliance represents a major milestone in creating bankable EV markets, fostering local technological capability, and enabling a sustainable mobility future.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
