ISLAMABAD: Pakistan’s electric vehicle (EV) sector is witnessing significant growth under the Automotive Industry Development and Export Policy 2021–2026.
So far, 57 licences have been granted to manufacturers for the production of electric two- and three-wheelers.
This progress is being driven by supportive fiscal incentives, tax exemptions, and reduced EV charging tariffs.
These developments align with national initiatives like Clean Green Pakistan and Make in Pakistan, aimed at promoting sustainability and local production.
According to the Economic Survey FY2024–25, 13 new manufacturing certificates were issued in the current fiscal year alone.
Production of electric two- and three-wheelers reached 32,923 units during the year, pushing the cumulative total since FY22 to 76,979 units.
Auto Industry Sees Mixed Performance
The broader auto sector experienced varied growth patterns.
Despite strong gains across most segments—ranging from 29% to 88%—tractor production saw a sharp decline of 35%, falling to 23,581 units from 36,425 last year.
The survey attributed these fluctuations to persistent regulatory hurdles that continue to restrict the auto industry from fully realising its supply and demand potential.
Nonetheless, the growth in EV production suggests rising investor confidence in the sector, as well as an encouraging policy environment for clean mobility solutions.
With an increasing focus on renewable energy and domestic manufacturing, electric vehicles are poised to play a critical role in transforming Pakistan’s transport sector.
Policy Backing and Local Integration
The government’s EV push is reinforced by its commitment to long-term sustainability and industrial localisation.
By offering lower power tariffs for charging, encouraging local assembly, and ensuring streamlined approvals, the policy aims to create an integrated EV ecosystem.
This also opens doors for job creation, innovation, and the reduction of fossil fuel dependence.
As the EV landscape continues to evolve, stakeholders anticipate a stronger shift toward cleaner, cost-effective mobility solutions in the years ahead.
