Auto industry flags flawed fuel-consumption data in climate plan

Pakistani automotive industry officials have expressed concern over discrepancies in official government data used in the recently published Pakistan Climate Prosperity Plan (CPP). The CPP estimates that Pakistan has 10 million motorcycles on the road, consuming between USD 6 billion and USD 8 billion worth of fuel annually. However, industry experts argue that this estimate is inconsistent with actual financial records.

The State Bank of Pakistan (SBP) reports that Pakistan imported USD 6.2 billion worth of refined petroleum products and USD 6.8 billion worth of crude oil in FY26. Experts point out that imported petroleum products include various fuel categories and that domestic petrol production reduces the fuel burden on motorcycles. This leads to the question of whether the CPP's claim that motorcycles alone consume the majority of fuel imports is accurate.

Additionally, there is a discrepancy in the number of motorcycles on the road, with the CPP estimating 10 million, while the government's Economic Survey reports 31.9 million. Both figures cannot represent the same vehicle population due to the average lifespan of motorcycles and the economic landscape of the country. The inconsistencies in data could lead to misallocation of limited national resources and have serious implications for the automotive supply chain.

The pressure is on Pakistan to enhance the quality of its economic data, with the International Monetary Fund (IMF) urging the adoption of international Government Finance Statistics (GFS) standards. The automotive sector is already facing economic challenges, which have been exacerbated by a government policy that favors importers over local manufacturers, despite the latter's contribution to employment creation.

Experts stress the need for policymakers to rely on verified data to make informed decisions regarding national economic and environmental policies.