ISLAMABAD: Pakistan this week launched a New Energy Vehicle (NEV) Policy 2025–2030, an ambitious plan to cut emissions, lower oil imports and use surplus power by pushing a shift from petrol to electric mobility.
Pakistan introduced its first EV policy in 2019 but fell short of targets due to weak implementation and COVID-19 disruptions. The new policy notes that electric vehicles have risen from just 567 in 2021 to more than 80,000 by June 2025, driven mainly by two- and three-wheelers. By July 2025, 65 manufacturers had secured certificates for local assembly of electric bikes and rickshaws, while two companies had approvals for electric cars and SUVs
Still, uptake has been slow compared to other countries. Analysts and officials cite high upfront costs, limited charging stations, and tight financing rules as barriers. The government says NEVs are vital for reducing transport emissions, which make up about 10% of Pakistan’s carbon output, and for cutting a $16 billion annual oil import bill.
“The New Energy Vehicles (NEV) Policy 2025-30 aims at reduction of vehicular emissions, improvement of air quality, enhancing the productive use of excess electricity generation capacity in the system and lowering oil import,” according to a copy of the policy available with Arab News.
SUBSIDIES AND DEMAND PUSH
The policy introduces a cost-sharing scheme to reduce the price gap with conventional vehicles.
Subsidies will initially cover Rs65,000 ($230) for two-wheelers and Rs400,000 ($1,420) for three-wheelers, while four-wheelers and commercial vehicles will be supported up to Rs15,000 ($53) per kilowatt-hour of battery capacity or five percent of invoice value, whichever is lower.
“In line with global practices, Pakistan will incentivize demand for NEV with a thrust on faster adoption of intra-city two- and three-wheelers as these mainly serve low-income groups and constitute around 87% of the vehicle population,” the policy says.
CHARGING NETWORK
The plan envisions 3,000 charging stations by 2030, with 40 fast chargers on motorways and highways within six months. Oil marketing companies must convert 10% of their filling stations into EV charging sites, while a new national tariff of Rs39.7 ($0.14) per kWh has been fixed for commercial charging.
PAYING FOR THE TRANSITION
To fund subsidies and infrastructure, the government will impose a levy on petrol and diesel vehicles.
“A levy on the first sale and import of internal combustion engine vehicles will be imposed through an Act of Parliament,” the policy states, adding that revenues will be ring-fenced to finance the NEV program.
The levy is projected to raise about Rs122 billion ($430 million) during the policy period.
BROADER TARGETS
The policy sets a goal of 30% of all new vehicle sales as NEVs by 2030, rising to 50% by 2040 and a net-zero transport fleet by 2060.
Islamabad will be designated a model “electric mobility city,” with provinces encouraged to replicate it.
From 2027, all federal government purchases of two- and three-wheelers must be electric, with only NEVs to be bought for official use thereafter.
Officials say the measures could avoid 4.5 million tones of carbon dioxide emissions by 2030 and open opportunities for new industries, from battery assembly to software and Internet-of-things applications in transport.
