Arshad Mahmood Awan
The Government of Pakistan has officially unveiled its National Electric Vehicle (NEV) Policy 2025-30, marking a historic milestone in the country’s journey toward a cleaner, greener, and economically resilient future. At the official launch event, Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, described the policy as a “transformational step” designed to reshape the transportation landscape while supporting Pakistan’s environmental and industrial goals.
Framed under the broader vision of the Prime Minister, the NEV policy aims to promote sustainable, affordable, and climate-friendly mobility options. Haroon Akhtar emphasized that Pakistan’s transportation sector is currently a significant contributor to greenhouse gas emissions, and its reform is both an economic and environmental necessity. By transitioning to electric vehicles, the policy seeks to combat climate change, reduce foreign fuel dependency, and promote industrial innovation.
One of the core targets set under the policy is to ensure that at least 30% of all new vehicles sold in Pakistan by 2030 are electric. This shift is expected to save approximately 2.07 billion litres of fuel annually, translating into nearly $1 billion in foreign exchange savings. Additionally, it is projected to cut down carbon emissions by 4.5 million tons and save up to $405 million in healthcare costs linked to air pollution-related illnesses.
To support this transformation, the government has allocated an initial subsidy of Rs9 billion in the fiscal year 2025-26. Under this fund, 116,053 electric bikes and 3,171 electric rickshaws will be subsidized. Significantly, 25% of this subsidy is reserved for women, a move aimed at empowering female commuters with safe, reliable, and eco-friendly transportation solutions.
The implementation of the policy is designed to be transparent and inclusive. A fully digital platform will handle applications, verification, and disbursement of subsidies, ensuring fair and timely access to all eligible beneficiaries. In addition, the government plans to install 40 EV charging stations along the national motorways, with a gap of 105 kilometers between each station to encourage inter-city EV travel.
Beyond infrastructure, the policy introduces progressive mechanisms like battery-swapping systems, vehicle-to-grid (V2G) integration, and the mandatory inclusion of EV charging points in new urban building codes. These steps aim to remove adoption barriers and future-proof Pakistan’s energy and transport sectors.
A cornerstone of the NEV policy is the focus on localization. Currently, over 90% of parts used in two- and three-wheeler EVs are already manufactured locally. The government plans to strengthen this base further by offering tailored incentives to small and medium-sized enterprises (SMEs) and extending tariff support through the Automotive Industry Development and Export Plan (AIDEP) until 2026. This facility will be gradually phased out by 2030, promoting sustainable industrial scaling.
The formulation of the NEV policy has been a consultative process. More than 60 experts, institutions, and stakeholders from the public and private sectors contributed to the policy’s development. A steering committee under the Ministry of Industries and Production will continue to oversee implementation through monthly and quarterly reviews, while the Auditor General of Pakistan will conduct a performance audit every six months.
Akhtar Khan highlighted that the policy is not just an environmental intervention but an economic strategy. It aims to create jobs, improve energy efficiency, reduce fuel imports, and promote technological self-sufficiency. He stressed the importance of cooperation among federal and provincial governments, private industry, and civil society to achieve the policy’s ambitious objectives.
The financial benefits of the policy are substantial. Over the next 24 to 25 years, Pakistan could save nearly Rs800 billion through a combination of reduced fuel imports, lower energy costs, and revenue from carbon credits. Charging electric vehicles with surplus grid electricity is expected to reduce capacity payments from Rs174 billion to Rs105 billion. Moreover, Pakistan could potentially earn Rs15 billion through the sale of carbon credits on global platforms.
On the energy front, Pakistan’s projected electricity demand for EVs over the next five years stands at 126 terawatt-hours. Encouragingly, this demand can be comfortably met with the current surplus in the national grid, without requiring major upgrades.
Electric vehicle ownership is also economically feasible for consumers. An individual investing an extra Rs150,000 in an electric bike, compared to a petrol model, can recover the additional cost in less than two years through savings on fuel. The same affordability logic applies to electric rickshaws and other small vehicles, making EVs a viable option for middle- and low-income earners.
To further support local manufacturers, the government has announced exemptions on customs duties and sales tax on imported EV components, leveling the playing field and making local production more competitive.
Akhtar Khan concluded his remarks by calling the NEV Policy a “game-changer” for Pakistan. He urged all stakeholders—including industry, provinces, civil society, and the public—to embrace this vision wholeheartedly. “This policy sets the foundation for an environmentally secure, economically viable, and technologically advanced Pakistan,” he said. “It is not just a policy document—it is a national commitment to a cleaner and more resilient future.”
In essence, Pakistan’s National Electric Vehicle Policy 2025-30 is a bold and forward-looking blueprint for transformation. It aligns economic development with climate action, offering a roadmap for cleaner cities, reduced oil dependency, and a vibrant domestic auto industry. If implemented effectively, it promises not only environmental protection but also national self-reliance and long-term economic stability.
