Our investment
Description of the investment.
Description of the investment.
This loan will support Mega Motor Company (MMC) to establish Pakistan’s first large-scale New Energy Vehicle (NEV) manufacturing plant, producing electric and hybrid four-wheelers and creating over 1,100 jobs.
BII’s financing will fund the import of critical plant and machinery needed to build and commission the facility, with an initial capacity of 25,000 vehicles per year. The project will strengthen local manufacturing, reduce reliance on imported vehicles, and support the shift to lower-emission transport through more affordable electric and hybrid models.
Our investment addresses a key market gap: limited access to long-term foreign currency financing for capital-intensive industrial projects in Pakistan. This support enables a first-of-a-kind NEV manufacturing facility to be developed in-country.
It also builds on BII’s broader approach to sustainable industrialisation, backing early-stage manufacturing platforms that drive job creation and reduce emissions.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
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How?
| Primary | Secondary |
|---|---|
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Developing a greenfield manufacturing plant which will locally assemble NEVs in Pakistan. |
Catalysing market – catalysing Pakistan’s NEV market through a demonstration pathway |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Planet |
Pakistan |
Pakistan faces a severe air pollution crisis, with cities such as Lahore, Karachi, and Faisalabad frequently recording hazardous air quality indicator levels above 200. The crisis causes an estimated 128,000 premature deaths each year, driven largely by the transport sector. Transport accounts for over 40% of urban air pollution and about 25% of energy-related CO2 emissions. This is largely due to a rapidly growing number of inefficient, ageing ICE vehicles and poor fuel quality. Tailpipe emissions - including PM2.5, NOx, and carbon monoxide - exacerbate respiratory and cardiovascular illnesses while increasing the country’s climate vulnerability. |
| Employees |
Pakistan |
The workforce is expected to be semi-skilled to highly skilled workers, given the level of automation expected in the sector. |
How much?
| Scale | Depth/Duration |
|---|---|
|
Emissions: The company expects to capture approximately 16% of Pakistan’s New Energy Vehicle (NEV) market, with sales projected to increase from 2,780 vehicles in 2025 to over 38,000 by 2034. Over this period, the average net selling price is expected to rise modestly from USD 13,068 (PKR 3.99 million) to USD 13,475 (PKR 6.07 million). This pricing broadly aligns with mid-tier hatchbacks and sedans, positioning NEVs as a viable option for the mass passenger vehicle market in Pakistan. Jobs: The company is also expected to create 1,114 jobs. |
Between 2025 and 2034, MMC expects to sell around 251,000 vehicles, resulting in an estimated abatement of 165,000 tonnes of CO2e from reduced tailpipe emissions. All full-time roles created will be new jobs, providing meaningful employment opportunities. These impacts are expected to be sustained over the long term as the business scales. |
Contribution/additionality
| Contribution/additionality |
|---|
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Limited access to foreign currency financing, combined with Pakistan’s challenging macroeconomic environment, constrains companies’ ability to fund capital expenditure. In response, the State Bank of Pakistan expects local firms to finance foreign currency capex through external borrowing. BII’s c.$22 million loan supports MMC to import critical plant and machinery required for the project. Commercial lenders have not been willing to provide this type of financing. In particular, international banks are unable to offer long-tenor loans of up to nine years, leaving a gap that BII’s financing helps to address. |
Risk
Stakeholder Participation RiskThe company’s ability to decarbonise the passenger vehicle market depends on the adoption of NEVs among retail buyers in Pakistan. Considering the nascency of the NEV market, the transaction faces a stakeholder participation risk, implying potentially limited adoption among retail buyers. Hybrid EVs (as opposed to 100% electric) could help mitigate this risk to some extent. |
Impact score
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Impact score (at point of investment)
The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. The Impact Score shown is based on the 2022-2026 Impact Score methodology. You can find out more here. The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party. |
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Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
We agreed an ESAP with the company focused on developing and implementing an ESMS proportionate to greenfield vehicle assembly operations, strengthening management of labour and occupational health and safety risks, including those relating to contractors, and enhancing environmental controls.
Environmental and social risk
Medium-High
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at [email protected]
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Key facts
- Last updated
:
When the last quarterly update of the website database occurred.
- June 2026
- Project number
:
An identifier number shared by investments in the same project.
- D8522
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- South Asia
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Pakistan
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Manufacturing
- Sub sector
:
The sub-sector that the investment is made into; this provides a more granular level of detail than the ‘sector’ information
- Automobile Manufacturers
- Investment policy :
- Growth
- Investment type :
- Debt
- Start date :
- November 2025
- Amount :
- $23m
- Currency of investment :
- USD
- Domicile
:
The company or investment fund’s place of incorporation.
- Pakistan
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
Type of investment portfolio that each investment is made under. Since 2014, we have run two investment portfolios: Catalyst and Growth. In addition, our Kinetic Portfolio enables us to manage concessional investment strategies.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- Last updated
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Gender and climate finance facts
- Climate finance
:
Indicates whether the investment is climate finance qualified or partially climate finance qualified and the type of climate finance (adaptation, mitigation or both). We define climate finance using the multilateral development bank (MDB) and the International Development Finance Club (IDFC) Common Principles climate finance methodology. See Common Principles for Climate Mitigation Finance Tracking and Common Principles for Climate Change Adaptation Finance Tracking. We provide the climate finance qualification and type for commitments from 2020 onwards, which is when we launched our Climate Change Strategy.
- Fully qualified
- Climate finance type
:
Mitigation: Indicates investments which, by avoiding or reducing GHG emissions or increasing GHG sequestration, contributes substantially to the stabilisation of GHG concentrations in the atmosphere – at a level which prevents dangerous anthropogenic interference with the climate system consistent with the long-term temperature goal of the Paris Agreement
Adaptation: Indicates investments aimed at preventing or reducing the risks or vulnerabilities posed by climate change and increasing climate resilience. This includes both adapted activities and enabling activities to manage and reduce physical climate risks
Dual: Indicates investments directed towards activities contributing to both climate change mitigation and climate change adaptation and meeting the respective criteria for each category
The climate finance type of the investment is determined at time of commitment.
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- Mitigation
- Climate finance
