By Arsalan Ali ISLAMABAD, April 27, (INP WealthPK): Pakistan has to endure a socio-economic cost for its transport sector in shape of mounting import fuel bill and emission of greenhouse gases. According to a report published by Arif Habib Limited, a securities brokerage, the volume of petroleum sales during the first nine months of the current fiscal year was 16.26 million tonnes, up from 14.15 million tonnes during the same period last year. When compared to the same period FY21, petroleum sales increased by 15% in the first nine months of FY22. Petroleum products have a major share in total imports. Transport sector is the major consumer of petroleum products. During the first seven months (July-Jan) of FY2022, around 76% of the oil was purchased by the transport sector, according to Oil Companies Advisory Council (OCAC). Mohammad Jehanzeb Khan, Deputy Chairman of Ministry of Planning, Development and Special Initiatives, said that in 2030, 30% of all new vehicles sold in Pakistan will be EVs, and 60% of all energy produced in the country will be generated from renewable energy resources, including hydropower. Talking to WealthPK, Dr Abedullah, Head of the Department of Environmental Economics at the Pakistan Institute of Development Economics, said the consumption of fossil increases greenhouse gas emissions and has a negative impact on climate. Abedullah said transportation sector is the largest user of oil, and primary contributor to the country's deteriorating environment. The exhaust of air pollutants from vehicles is depleting the environment, he added. Abedullah said the manufacturing of EVs in Pakistan will help establish new industries. “Indigenous assembling of EVs has the potential to add hundreds of thousands of employment opportunities,” he said. Pakistan has imported more than 2,000 EVs from different countries and introduced its Electric Vehicle Policy 2020-25 in 2020, and the share of EVs is forecast to be 90 percent by 2040, WealthPK reported. According to Pakistan Bureau of Statistics, the petroleum group imports reached $12.941 billion in July-Feb FY 2022, as compared to $6.455 billion in July-Feb FY2021. The percentage share of petroleum products in the import bill has increased from 19% in July-Feb 2020-21 to 24.64% in July-Feb 2021-22. The hefty import fuel bill escalated the trade deficit. Moreover, if the transport sector continues to expand, petroleum products demand will increase and put pressure on foreign payments, thus enlarging the trade deficit. Transport sector is the leading contributor to the release of such environmental pollutants (greenhouse gas emissions). The usage of electric vehicles (EVs) in the country will help reduce the hazardous emission. The combustion of fossil fuels significantly contributes to greenhouse gas emissions. Due to the unrestricted use of fossil fuels, approximately 46% of GHGs (greenhouse gases) escape into the atmosphere. EVs have the potential to significantly reduce reliance on oil, while also positively contributing to climate change mitigation. The fuel import bill will be reduced because the majority of fuel used in transportation is imported. EVs will help reduce the country's trade deficit by lowering import oil bills. Unlike conventional vehicles, which require an elaborate supply and demand mechanism for delivering gasoline at fuel stations, EVs do not require any such elaborate network. Almost all regions in Pakistan are being supplied with adequate power from the national grid which will be sufficient to set up charging facilities for EVs. The government should assist the local/foreign investors to install charging stations. Free markup loan facility should be provided to the investors to encourage investment in the establishment of manufacturing plants.