Pakistan Unveils National Electric Vehicle Policy 2025-30 to Drive Green Mobility and Economic Growth
ISLAMABAD – In a landmark move towards sustainable transport and industrial innovation, the Government of Pakistan has launched the National Electric Vehicle (NEV) Policy 2025-30, setting ambitious goals to accelerate electric vehicle adoption across the country.
The policy aims to ensure that 30% of all new vehicles sold by 2030 are electric — a shift expected to save 2.07 billion litres of fuel annually, translating to nearly $1 billion in foreign exchange savings. It also seeks to cut carbon emissions by 4.5 million tonnes and reduce healthcare-related costs by $405 million every year.
Key Highlights of the NEV Policy 2025-30
At a press conference, Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, emphasized the policy’s alignment with Pakistan’s commitment to clean energy, economic efficiency, and local industry development.
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Initial Subsidy Allocation: A total of Rs9 billion has been set aside for the fiscal year 2025-26 to support the purchase of 116,053 electric bikes and 3,171 electric rickshaws.
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Women Empowerment: 25% of the subsidies will be allocated to female applicants, ensuring safer, affordable, and eco-friendly transport options for women.
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Digital Platform: A fully digitized portal will handle applications, verifications, and subsidy disbursements to ensure transparency and efficiency.
EV Infrastructure Expansion
To support the growing number of electric vehicles, the government plans to install 40 EV charging stations along the national motorways, with each station placed approximately 105 kilometers apart. Additional measures include:
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Battery Swapping Stations
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Vehicle-to-Grid (V2G) Technology
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Mandatory EV charging points in new building codes for urban centers
Boosting Local Manufacturing and SMEs
The NEV policy places a strong emphasis on local production, with more than 90% of two- and three-wheeler parts already being manufactured domestically. To encourage further growth:
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Incentives will be offered to domestic manufacturers
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Special support packages will be introduced for small and medium enterprises (SMEs)
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Exemptions on customs duties and sales tax for EV components will continue
This localized approach not only supports economic growth but also results in locally produced EVs being 30-40% more affordable than imported models.
Economic and Environmental Impact
The government expects the NEV policy to generate savings of up to Rs800 billion over the next 25 years. This includes:
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Reduced reliance on imported fuel
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Lower electricity capacity payments (from Rs174 billion to Rs105 billion)
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Potential earnings of up to Rs15 billion from carbon credits
Pakistan’s surplus energy capacity is expected to meet the 126 terawatt-hour demand projected for electric vehicles over the next five years.
Faster Payback for EV Users
For everyday consumers, the financial benefits of switching to electric vehicles are substantial. For example:
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An electric bike with a Rs150,000 higher upfront cost can help users recover that investment within 1 year and 10 months through fuel savings alone.
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Lower charging costs and maintenance requirements further enhance the affordability of EVs.
Strategic Oversight and Policy Continuity
The policy has been shaped through consultations with over 60 industry experts and institutions under the guidance of a steering committee from the Ministry of Industries and Production. Regular performance audits will be conducted by the Auditor General of Pakistan every six months.
Meanwhile, the existing Auto Industry Development and Export Policy will remain effective until 2026, with a gradual phase-out planned by 2030.
A Step Toward a Cleaner, More Prosperous Pakistan
Mr. Khan described the NEV Policy as a “foundation for sustainable transport, energy efficiency, and industrial growth”. With strategic planning, robust infrastructure development, and local manufacturing incentives, the policy aims to not only reduce Pakistan’s carbon footprint but also unlock significant economic opportunities and technological advancement.
