On June 19, the government of Pakistan officially launched the National Electric Vehicle Policy for the Years 2025 to 2030, aiming to achieve a cleaner and more sustainable future. This policy sets a bold target of converting 30% of all new vehicle sales to electric by the year 2030. This includes motorbikes, cars, and rickshaws that aim to address the rising environmental challenges in Pakistan, including increasing fuel import bills and the need for modern and clean vehicles.
The government has reserved the Rs100 billion is allocated to support the EV policy, with Rs. 9 billion allocated for 2025. According to this policy, a subsidy of Rs50,000 will be given on electric bikes, while a subsidy of Rs2,00,000 will be given to electric rickshaw users. Importantly, 25% of the subsidy is reserved for women to support affordable and eco-friendly mobility options for them. The policy enables more people to purchase EVs on low-interest loans, thanks to government coverage of the interest. According to the officials, these vehicles will pay for themselves in just 22 months due to savings on fuel and maintenance.
This EV policy includes strong incentives for the local manufacturers to support the transition. A significant decline occurs in the import duties and sales tax on the EV parts. Many Chinese companies have already shown interest in investing in this sector, with around 20 plots in Special Technology zones allocated for EV manufacturing units. This policy also includes SME-friendly land leasing options for 50 years and encourages small businesses to enter the EV sector.
This policy also focuses on infrastructure development. The government plans to establish 40 EV charging stations along the motorways, spaced approximately every 100 to 105 kilometers, and introduce a vehicle grid system and energy-saving initiatives. The building codes are being updated to require EV charging points in new construction projects that promote long-term sustainability.
The outcomes of this policy are significant. It is expected to save Rs800 billion over the next five years in the form of fuel imports and also help mitigate 4.5 million tons of carbon emissions every year. Furthermore, this policy also helps save $405 million due to improved air quality. This policy is also expected to generate a revenue of Rs15 billion in the form of carbon credits.
Before that, the government launched the 1st EV policy in 2019 with aims to mitigate the environmental degradation and dependency on imported fuel. Its main target includes the conversion of 30% of automobiles till 2030 while 90% till 2040. The policy aims to encourage investment in the EV sector, manufacturing and promote the research and development. As compared with the 2025, the 2018 policy lacks the financial commitments, clear implementation mechanisms and time period that limits the practical impact and slowed execution.
The National EVs policy 2025-2030 reflects a firm commitment from the Pakistani government to lead the transition towards clean and affordable mobility. While its goals are ambitious, the combination of public subsidies, manufacturing support, and infrastructure investments could make Pakistan a leading EV adopter in the region, provided the policy is implemented effectively and equitably.