Pakistan’s new electric vehicle policy targets 30% green cars by 2030

An attendee takes photos of the Chinese electric vehicle BYD models on display during an event to announce the plans to open a car production plant in Pakistan, in Lahore on August 17, 2024. (REUTERS/File)
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Updated 22 June 2025
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Pakistan’s new electric vehicle policy targets 30% green cars by 2030

  • The policy aims to cut Pakistan’s reliance on imported fuel, shielding the economy from global oil price fluctuations
  • Electric vehicles are also expected to offer long-term savings for consumers through reduced fuel and maintenance costs

ISLAMABAD: Pakistan has unveiled an ambitious New Electric Vehicle Policy (NEVP) 2025–2030 that targets 30% of all new vehicle sales to be electric by 2030, Pakistani state media reported on Sunday.

The policy, which covers cars, buses, motorcycles and rickshaws, aims to accelerate the country’s shift toward sustainable transport, reduce fossil fuel dependence, and curb climate-warming emissions, the state-run APP news agency reported.

Pakistan imports most of its energy needs and the country’s urban areas exhibit some of the world’s highest levels of air pollution, primarily due to sub-2.5 μm particulate emissions. This issue significantly impairs both the country’s economy and the quality of life of its residents.

“Transitioning to electric vehicles (EVs) is critical for a healthier, greener and economically stable future,” Muhammad Saleem Shaikh, a spokesperson for the Climate Change Ministry, told APP, contending that transport sector was a major contributor to air pollution and greenhouse gas emissions in Pakistan.

With the NEVP now in effect, Pakistan, which has seen erratic changes in its weather patterns which experts blame on climate change, joins a growing list of nations pushing for zero-emission mobility to combat climate change and urban pollution.

Mohammad Asif Sahibzada, director-general of the Climate Change Ministry, highlighted that EVs produce zero tailpipe emissions, which will significantly reduce urban smog and help Pakistan meet its international commitments.

“This shift will also lower respiratory and cardiovascular diseases, particularly benefiting children and the elderly,” he added.

The policy aims to cut Pakistan’s reliance on imported fossil fuels, shielding the economy from global oil price fluctuations. EVs are also expected to offer long-term savings for consumers through reduced fuel and maintenance costs.

The government plans to incentivize EV adoption through tax breaks, subsidies, and infrastructure development, including nationwide charging stations.

“Electric vehicles are not just about transport; they are central to Pakistan’s climate action strategy,” Muhammad Azeem Khoso, the ministry’s director for urban affairs, was quoted as saying by the APP.

“This policy marks a decisive step toward a cleaner, more resilient future.”


Pakistan, Saudi Arabia resolve to strengthen economic cooperation during Davos summit 

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Pakistan, Saudi Arabia resolve to strengthen economic cooperation during Davos summit 

  • Pakistan finmin Muhammad Aurangzeb meets Saudi Arabia's Investment Minister Khalid bin Abdulaziz Al-Falih 
  • Al-Falih appreciated Pakistan's potential, particularly its natural resources, strategic location, says Pakistan Finance Division

KARACHI: Pakistan's Finance Minister Muhammad Aurangzeb and Saudi Investment Minister Khalid bin Abdulaziz Al-Falih met in Davos this week, resolving to strengthen ongoing bilateral cooperation by working closely together and maintaining high-level contact, Pakistan's Finance Division said. 

Islamabad and Riyadh have moved closer to broaden their cooperation in recent months, signing a landmark defense pact in September 2025 and agreeing to launch an economic cooperation framework a month later to strengthen bilateral trade and investment relations. 

Aurangzeb met Al-Falih during the sidelines of the 56th annual World Economic Forum (WEF) summit in Davos on Thursday, Pakistan's Finance Division said in a statement. The two sides reviewed ongoing cooperation and reviewed progress on existing and planned projects across various sectors, the statement added. 

"Both sides reiterated their strong resolve to expand bilateral collaboration by working closely together, strengthening institutional linkages and maintaining regular high-level contacts," Pakistan's Finance Division said on Thursday.

"They agreed that sustained engagement and mutual understanding would help translate shared objectives into concrete and mutually beneficial initiatives."

The Finance Division said Al-Falih appreciated Pakistan's importance and potential, particularly its natural resources, strategic location and emerging opportunities for investment.

"The meeting concluded in a positive and forward-looking spirit, with both ministers expressing confidence that closer partnership and continued dialogue would further strengthen economic and investment ties between Pakistan and the Kingdom of Saudi Arabia," the statement said. 

The two countries enjoy cordial relations dating back decades and firmly grounded in shared values, culture, faith and economic ties. The Kingdom is home to over two million Pakistani expats, making it the largest source of foreign remittances for cash-strapped Pakistan. 

Pakistan and Saudi Arabia signed 34 business agreements worth $2.8 billion across multiple sectors in 2024, further strengthening their economic cooperation. 

Riyadh has also bailed Pakistan frequently out of economic crises over the years, providing it crucial loans and oil on deferred payment basis.