ISLAMABAD, Feb 25, 2026 — Mega Motor Company (Private) Limited (MMC), the official partner of BYD in Pakistan, has signed a financing agreement with British International Investment (BII) to establish Pakistan’s first purpose-built large-scale new energy vehicle (NEV) manufacturing plant.

Under the agreement, BII — the United Kingdom’s development finance institution and impact investor — will provide long-term foreign currency financing covering 25 percent of the total project cost. The funding will support construction of a state-of-the-art NEV manufacturing facility, which is scheduled to become operational in the second half of 2026.

The planned plant will incorporate advanced automation and manufacturing systems aligned with international automotive standards. Company officials said the project represents one of the early green energy-linked financing arrangements in Pakistan’s automotive sector.

Focus on clean mobility and emissions reduction

According to the Pakistan Institute of Development Economics, the transport sector contributes more than 43 percent of the country’s greenhouse gas emissions. Pakistan also faces persistent air quality challenges.

Research cited by the company indicates that a 30 percent shift to new energy vehicles could reduce total emissions by nearly 20 percent. Officials said the project aims to support cleaner transport options, reduce reliance on imported fuel and promote local green industry development.

The facility is expected to generate more than 1,100 jobs and contribute to industrial capacity building. Project estimates suggest it could help avoid approximately 165,000 tonnes of carbon dioxide emissions by 2034.

Aly Khan, Chief Executive Officer of Mega Motor Company, said the investment marks an important step toward building a competitive NEV ecosystem in Pakistan. He stated that the project is intended to strengthen local manufacturing capability, encourage technology transfer and support long-term industrial growth.

Stephen Priestley, Managing Director at British International Investment, said the financing aligns with BII’s focus on sustainable industrial development and climate action, adding that it supports Pakistan’s transition toward cleaner transport solutions.

MMC also stated that, with BII’s support, it is implementing environmental, social and governance (ESG) standards, including labour safeguards, occupational health and safety systems, stakeholder engagement mechanisms and responsible supply chain practices.