Pakistan's ambitious plan to replace petrol-powered motorcycles with electric two-wheelers is hitting a wall of regulatory fragmentation, safety risks, and a thriving grey market for used lithium-ion batteries. A National Assembly sub-committee meeting on Monday exposed deep gaps in oversight, with lawmakers and industry insiders warning that without a dedicated authority and a comprehensive battery policy, the transition could endanger both consumers and the environment. Main Developments The sub-committee, convened by Dr Mehreen Bhutto, learned that no single body regulates electric two-wheelers in Pakistan. Manufacturing licences come from the Engineering Development Board (EDB) under the Ministry of Industries, while the Pakistan Standards and Quality Control Authority (PSQCA), part of the Ministry of Science and Technology, handles quality standards. Charging infrastructure falls under the National Energy Efficiency and Conservation Authority (NEECA) within the Ministry of Energy, and road safety is left to provincial authorities. Nearly all lithium-ion batteries are imported, but used batteries often enter the country as scrap—a loophole under the Customs Department and Ministry of Commerce. The PSQCA representative noted that vehicles on the road are regulated provincially, creating a patchwork of oversight. Dr Bhutto expressed concern that some manufacturers use low-quality batteries that fail within two to three years, with replacements costing up to Rs90,000. Read also: Trump Crypto Profits Shifted to Safer Stocks and Bonds Industry representatives highlighted additional hurdles. Dr Muhammad Amjad said EDB licences do not mandate lithium-ion batteries, allowing cheaper lead-acid dry batteries. High import duties on lithium-ion cells have fuelled a grey market where unlicensed operators refurbish scrap cells and sell them openly. Shahid Bajwa pointed to the lack of a mechanism to promote localisation of components and manufacturing, and asked where illegal battery makers could be reported. Background The government has been pushing electric two-wheelers as a cleaner, cheaper alternative to petrol motorcycles, which dominate Pakistan's roads. But the fragmented regulatory framework has been a longstanding issue. Multiple ministries and departments oversee different parts of the sector without coordination, leaving room for substandard products to enter the market. The absence of a dedicated lithium battery policy has allowed unsafe practices to flourish, including the import of used batteries as scrap. Manufacturers have long called for stronger technical capacity at PSQCA, including dedicated lithium battery testing laboratories. The EDB's CEO, Hammad Mansoor, acknowledged that a new battery policy was being finalised, but no timeline was given. Why It Matters Electric motorcycles pose unique safety risks compared to petrol-powered ones if batteries and components fail. Substandard batteries can overheat, catch fire, or leak toxic materials, endangering riders and the environment. The grey market for refurbished lithium-ion cells not only undermines legitimate manufacturers but also raises the risk of accidents, as unregulated cells may lack safety features. Without a clear regulatory authority and quality standards, the push for e-bikes could backfire, eroding public trust and slowing adoption. High import duties on lithium-ion batteries also increase costs, making it harder for local manufacturers to compete with grey-market operators. The lack of localisation means Pakistan remains dependent on imports, missing an opportunity to build a domestic supply chain for the growing e-mobility sector. What's Next Dr Bhutto asked stakeholders to submit recommendations to the committee. The EDB is finalising a new battery policy, which officials hope will address many of the issues raised. However, no date for approval was announced. The sub-committee is expected to review the recommendations and push for a unified regulatory framework, but the path forward remains unclear given the involvement of multiple ministries and departments.