Lahore University of Management Sciences (LUMS) and Habib Bank Limited (HBL) have formalized a strategic collaboration to develop commercial financing models for electric mobility, marking a key step in Pakistan’s transition toward sustainable transportation. The agreement supports LUMS’ upcoming initiative, Pakistan – Battery Swapping Network, which aims to accelerate large-scale adoption of electric three-wheelers and enable accessible charging alternatives for urban commuters and transport operators.
The memorandum of understanding focuses on designing financing mechanisms that make battery-powered three-wheelers financially viable for commercial fleets and independent drivers. With cost barriers remaining a key hurdle for electric vehicle adoption in Pakistan, the partnership intends to create structured lending products, supported by de-risking tools, to encourage market participation and ease the shift from internal combustion engine (ICE) vehicles to electric units. The initiative builds on the increasing urgency to improve air quality in major cities and reduce reliance on fossil-fuel transport.
The signing ceremony took place at the LUMS campus and was attended by leadership from both institutions, including Omer Mallick, Product Head SME at HBL, and Dr. Tariq Mahmood Jadoon, Provost at LUMS. Representatives from the LUMS Energy Institute (LEI) and HBL’s SME division also participated, reaffirming the commitment to link research expertise with financial innovation.
The Pakistan – Battery Swapping Network will introduce a model where electric rickshaw drivers can exchange depleted batteries for charged ones at dedicated swap points, enabling fast energy replenishment without the downtime associated with plug-in charging. This business model has proven effective in emerging markets where commercial mobility depends on continuous vehicle availability. By pairing battery swapping infrastructure with structured financing, the program aims to establish a replicable EV adoption roadmap for Pakistan.
Dr. Naveed Arshad, Director of the LUMS Energy Institute, noted that the collaboration will help demonstrate the economic feasibility of electric three-wheelers compared to traditional combustion-based vehicles. He emphasized that EV integration requires not only technological readiness but also investment confidence and financial support structures capable of enabling participation from small and medium-sized enterprises and commercial transport operators.
Dr. Tariq Mahmood Jadoon highlighted LUMS’ leadership in EV research and engineering development, crediting the university’s dedicated eMobility Research and Development Centre as a core enabler. The facility, the first of its kind in the country, provides battery, motor, and component testing infrastructure and serves as a research hub supporting domestic EV ecosystem growth. He reiterated that academic-industry partnerships will shape future energy and transportation systems in Pakistan.
Representing HBL, Omer Mallick stated that the bank will use support from the Mitigation Action Facility to provide subsidised financing under a first-loss guarantee framework. This structure is designed to lower lending risk and enable investment into EV charging and swapping networks, unlocking participation from fleet operators and SMEs. The bank’s involvement reflects increasing financial sector engagement in climate-aligned initiatives.
The collaboration connects policy goals, technology expertise, and financial enablement, providing an important foundation for Pakistan’s emerging electric mobility sector. As public-private models expand, the country’s EV transition is expected to gain momentum through scalable infrastructure, structured financing pipelines, and research-driven deployment strategies.
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