The Government of Pakistan on Thursday launched the National Electric Vehicle Policy 2025-30, aimed at ensuring electric vehicles account for 30% of all new vehicles sold in the country by 2030.
Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan told a press conference the new policy was in line with P.M. Shehbaz Sharif’s vision of promoting clean, sustainable and affordable transportation while also boosting local industry and protecting the environment. He said the transition to electric vehicles aimed to save 2.07 billion liters of fuel annually, roughly $1 billion in foreign exchange savings. Additionally, it would reduce carbon emissions by 4.5 million tons, potentially slashing healthcare-related costs by $405 million annually.
According to Khan, the transport sector remains a major source of carbon emissions in Pakistan.
During his press conference, he announced the government had allocated Rs. 9 billion in subsidies for the new policy in fiscal year 2025-26. The subsidy, he said, would facilitate the induction of 116,053 electric bikes and 3,171 electric rickshaws. Additionally, he said, 25% of this subsidy was reserved for women to provide them with safe, affordable and eco-friendly mobility.
The SAPM said the subsidies would be disbursed transparently through an online application.
Further, the new policy is targeting the installation of 40 new EV charging stations on motorways, with an average distance of 105km between them. It also includes the introduction of battery swapping systems, vehicle-to-grid schemes and mandatory integration of EV charging points in new building codes to facilitate wider adoption in urban areas.
Khan said over 90% of parts for two- and three-wheelers are already manufactured locally and the government would provide incentives to encourage local manufacturing. As part of the EV push, he said, the Auto Industry Development and Export Policy would remain in place until 2026 and be phased out by 2030.
The SAPM claimed the policy would yield savings of around Rs. 800 billion over the next 24-25 years through reduced fuel imports, revenue from carbon credits and the use of cheap electricity. Charging vehicles with electricity, he claimed, would reduce capacity payments from Rs. 174 billion to Rs. 105 billion, while the carbon credits could generate around Rs. 15 billion in revenue.