Pakistan launches EV policy to boost clean mobility, local industry

Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan launched Pakistan’s National Electric Vehicle (NEV) Policy 2025–30.

Addressing a press conference along with Secretary Ministry of Industries and Production Saif Anjum and Chief Executive Officer Engineering Development Board (EDB) Engr. Khuda Bukhsh, Haroon said 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 stressed that the transport sector is a major contributor to carbon emissions in Pakistan, and reform in this area is imperative.

“EV policy supported Pakistan’s commitments under the Paris Agreement and reinforces efforts to curb fossil fuel dependence and urban air pollution”, he remarked.

He said that one of the major targets under the policy is to ensure that 30% of all new vehicles sold in Pakistan by 2030 are electric. This transition is projected to save 2.07 billion liters of fuel annually, amounting to nearly $ 1 billion in foreign exchange savings. Additionally, the policy is expected to reduce carbon emissions by 4.5 million tons and cut healthcare-related costs by $405 million per year.

He said that currently, sixty one licenses issued from manufacturing on motorbikes and three-wheelers while two licenses have been issued for the manufacturing of electric vehicles.

Akhtar announced that an initial subsidy of Rs. 9 billion has been allocated for the fiscal year 2025–26, under which 116,053 electric bikes and 3,171 electric rickshaws will be facilitated in Pakistan. Importantly, 25% of this subsidy is reserved for women to provide them with safe, affordable, and eco-friendly mobility.

The government has projected a cumulative subsidy of over Rs. 100 billion for the five year program, with 25% of allocations reserved specifically for women to promote inclusive access.

He said a fully digital platform has also been introduced to ensure transparent online application, verification, and disbursement of subsidies.

Moreover, the policy outlines the installation of 40 new EV charging stations on motorways, with an average distance of 105 kilometers.

The policy also includes the introduction of battery swapping systems, vehicle-to-grid (V2G) schemes, and mandatory integration of EV charging points in new building codes to facilitate wider adoption in urban areas.

“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. The government will also introduce special support packages for small and medium enterprises (SMEs) to further boost localization”, he added.

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

The special assistant noted that the policy was developed through consultations with over 60 experts, institutions, and industry stakeholders, guided by a steering committee under the Ministry of Industries and Production since September 2024.

The steering committee will hold monthly and quarterly review meetings, while the Auditor General of Pakistan will conduct a performance audit every six months.

He stressed that the NEV Policy 2025–30 is not only an environmental revolution but also a foundation for industrial growth, local employment, energy efficiency, and technological self-reliance in Pakistan.

He expressed hope that federal and provincial governments, the private sector, and citizens will work together to realize this vision of a clean, modern, and sustainable transport system.