Launch of the NEV Policy
Pakistan has formally launched its National Electric Vehicle Policy 2025–30, setting a course for transforming the country’s auto industry and energy consumption. The policy, unveiled by the Ministry of Industries and Production in June 2025, aims for 30 percent of all new vehicle sales to be electric by the end of the decade. It signals not just a transition in transport but a broader shift toward cleaner energy adoption, aligning Pakistan with international climate commitments and the global movement toward sustainable mobility.
Fuel Savings and Environmental Gains
Government estimates suggest that once implemented, Pakistan could save over 2.07 billion liters of fuel annually, equal to nearly one billion U.S. dollars in foreign exchange. Emissions would fall by around 4.5 million tonnes of carbon dioxide each year, reducing the burden of air pollution on public health. Experts note that this reduction in emissions could also help lower the economic cost of treating respiratory illnesses, which already consume a significant share of the country’s healthcare budget.
Subsidies and Social Inclusion
The government allocated nine billion rupees in subsidies for the fiscal year 2025–26. These funds will support the purchase of more than 116,000 electric motorcycles and over 3,100 electric rickshaws, with 25 percent of the quota specifically reserved for women. The applications and payments will be processed digitally, a move intended to ensure transparency and efficient distribution. Beneficiaries include women, students, factory workers, rural residents, and low-income groups, with applications managed through the Engineering Development Board’s portal. Officials believe that supporting motorcycles and rickshaws—vehicles used by millions every day—will have the quickest impact on reducing oil consumption and cutting urban pollution.
Building Charging Infrastructure
Public enterprises such as Pakistan State Oil (PSO) are also part of the initiative, playing a major role in developing charging infrastructure along motorways. This mix of public and private sector involvement highlights the collaborative nature of the policy’s implementation. Forty charging stations are planned along national motorways, spaced about 105 kilometers apart, according to the Ministry of Information and Broadcasting.
The framework also encourages battery swapping, vehicle-to-grid integration, and mandatory charging points in new buildings. These measures are critical for easing consumer concerns about range and accessibility, particularly in urban centers where EV demand is likely to grow fastest. In the long run, the success of these measures could pave the way for smart cities where mobility and energy systems are more deeply integrated.
Boosting Local Manufacturing
Over 90 percent of components for two- and three-wheeler EVs are already produced in Pakistan. By extending tariff protections until 2026 and then phasing them out by 2030, the government hopes to strengthen local production capacity before opening the market fully. Locally made EVs are 30 to 40 percent cheaper than imports. To further support this ecosystem, tax exemptions are being offered to manufacturers who commit to local assembly. Industry analysts argue that this strategy not only secures jobs in the auto sector but also builds a foundation for Pakistan to eventually export EV components to regional markets.
Making Electric Mobility Nationwide
By targeting diverse demographics, the policy aims to make electric mobility a nationwide shift. The approach recognizes that affordability, accessibility, and cultural acceptance are just as important as technology itself in shaping long-term adoption.
Balancing Policy and Implementation
The NEV Policy 2025–30 reflects a pragmatic balance of subsidies, infrastructure commitments, local manufacturing incentives, and governance. If carried out effectively, the policy could reshape Pakistan’s auto sector, reduce emissions, and foster economic growth, positioning the country as a regional leader in electric mobility. The challenge now lies in consistent implementation, ensuring that subsidies reach genuine beneficiaries, infrastructure keeps pace with demand, and manufacturers deliver quality vehicles at scale. Success on these fronts could make the policy a model for other developing nations embarking on similar transitions.
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