Pakistan rolls out EV Policy 2025–30

June 20, 2025 (MLN): In a bold leap toward sustainability and industrial self-reliance, the government has unveiled its National Electric Vehicle (NEV) Policy 2025–30, a transformative roadmap aiming to revolutionise the country’s transport landscape.

Launched in Islamabad, the new policy sets a clear target: 30% of all new vehicles sold by 2030 will be electric.

It promises massive fuel savings of 2.07 billion litres annually and slashes carbon emissions by 4.5 million tons.

It also aims to cut healthcare costs by $405 million per year while saving $1 billion in foreign exchange.

To accelerate this shift, the government has allocated Rs. 9 billion in subsidies for FY26, covering over 116,000 electric bikes and 3,100 electric rickshaws.

Notably, 25% of these subsidies are reserved for women, ensuring inclusive access to safe, affordable, and eco-friendly mobility.

A fully digital platform has been launched to manage applications and subsidy disbursement with transparency.

The policy also outlines the installation of 40 EV charging stations along motorways and promotes battery swapping and vehicle-to-grid (V2G) technologies. New building codes will now require mandatory EV charging points.

Backed by industry-wide consultations and monthly reviews by a dedicated steering committee, the policy focuses on local manufacturing, already producing over 90% of parts for two- and three-wheelers, and offers extended tariff incentives through the AIDEP facility till 2026.

EV users are expected to recover their higher upfront costs within just under two years, thanks to lower fuel expenses.

In total, the policy could help Pakistan save Rs800 billion over 25 years and tap Rs15 billion worth of carbon credits.

With energy surplus ready to meet the 126 TWh EV demand in the next five years, this move is not just green, it is strategic.

Customs and tax exemptions on EV parts further sweeten the deal for manufacturers.

Addressing a press conference in Islamabad, Special Assistant to the Prime Minister on Industries and Production, Mr. Haroon Akhtar Khan, stated that the new EV policy is aligned with the Prime Minister’s vision of promoting clean, sustainable, and affordable transportation while encouraging local industry and protecting the environment.

He emphasised that the transport sector is a major contributor to carbon emissions in Pakistan, and reform in this area is imperative.

To encourage local manufacturing, incentives are being provided to domestic producers. Currently, over 90% of parts for two- and three-wheelers are already manufactured locally, he added.

The government will also introduce special support packages for small and medium enterprises (SMEs) to further boost localisation.

The AIDEP tariff facility will continue until 2026 and be phased out gradually by 2030, he noted.

Copyright Mettis Link News