Why Pakistan's battery industry should be viewed as a phased industrial transformation rather than a single investment project

A Dawn opinion piece argues that battery manufacturing should be treated as a phased industrial transformation. According to the writer, domestic lithium-ion battery demand could rise from 5-6GWh now to 40-51GWh by 2031, a market valued between $6.5 billion and $9bn. Over 80 per cent of cells, packs and critical materials are brought in from abroad, and the country has no commercial cell manufacturing, national testing infrastructure or organised recycling system.

The writer sees the proposed Battery Manufacturing Policy 2026-31 as a workable framework, with lower sales tax for local makers, faster depreciation, tariff protection against finished battery imports and localisation targets of 70pc, then 80pc, of value addition. Policy documents alone, however, are not enough, so implementation and several gaps need attention. The piece highlights limited use of the Export Facilitation Scheme by battery makers and the need for technology-neutral incentives as sodium-ion and other chemistries advance.

The writer calls quality assurance the most urgent weakness, citing reports of substandard and rejected cells in local markets. Accredited testing labs, certification and digital traceability are proposed, with pack assembly, management systems and casings as the starting point. Three priorities are stressed: full approval of the policy, complete Export Facilitation Scheme access for battery makers, and a national testing and certification framework.