ISLAMABAD: The federal government has unveiled a groundbreaking National Electric Vehicle Policy (2025-30) that promises to transform Pakistan’s transportation landscape while addressing critical economic and environmental challenges.
With an ambitious vision to convert 30% of all new vehicle sales to electric by 2030, the policy introduces comprehensive measures including massive subsidies, infrastructure development and industrial support to accelerate the EV transition.
Subsidies and Incentives Drive Adoption
The centerpiece of the new policy is a Rs9 billion subsidy package for the current fiscal year targeting mass-market electric vehicles.
This substantial financial support will enable the purchase of 116,053 electric bikes and 3,171 electric rickshaws across the country, making green transportation accessible to ordinary citizens.
In a progressive move, the government has reserved 25% of the total subsidy exclusively for women buyers to promote gender-inclusive mobility solutions.
A fully digital platform has been established to ensure transparent and efficient processing of subsidy applications and disbursements.
The policy also eliminates customs duties and sales tax on EV components to make electric vehicles more affordable for consumers while supporting local manufacturers.
Infrastructure and Industry Transformation
Recognizing the need for robust charging infrastructure, the policy mandates installation of 40 new EV charging stations along major motorways.
These stations will be strategically placed at intervals of approximately 105 kilometers to enable long-distance electric travel across the country.
Innovative solutions like battery swapping systems and vehicle-to-grid technology have been incorporated to address range anxiety and optimize energy use.
New building codes will require EV charging points in all upcoming constructions, ensuring urban areas are equipped for the electric transition.
On the industrial front, the policy builds on Pakistan’s existing strength in two and three-wheeler manufacturing where over 90% of parts are already produced locally.
Special support packages for small and medium enterprises aim to strengthen this domestic manufacturing base and create new jobs in the green economy.
The government projects massive economic benefits from the EV transition including annual savings of 2.07 billion liters of fuel worth nearly $1 billion in foreign exchange.
Environmental gains are equally impressive with expected reductions of 4.5 million tonnes in carbon emissions and $405 million in healthcare savings from improved air quality.
For consumers, the math is compelling – an electric bike buyer can recover the additional Rs150,000 investment through fuel savings in less than two years.
The policy framework includes rigorous monitoring mechanisms with monthly and quarterly reviews by a dedicated steering committee.
The Auditor General of Pakistan will conduct six-monthly performance audits to ensure transparency and accountability in implementation.
Developed through extensive consultations with over 60 experts since September 2024, the policy represents a holistic approach to sustainable mobility.
