Pakistan Unveils New Energy Vehicle Policy to Accelerate EV Transition

Pakistan has rolled out its New Energy Vehicle (NEV) Policy 2025–2030, an ambitious roadmap to cut emissions, curb oil imports, and utilize surplus electricity by accelerating the shift from petrol-powered to electric transport.

The country’s first EV policy in 2019 struggled due to weak implementation and COVID-19 disruptions. Since then, however, adoption has grown from just 567 electric vehicles in 2021 to over 80,000 by mid-2025, largely led by two- and three-wheelers. By July 2025, 65 manufacturers had secured approvals for local production of electric bikes and rickshaws, while two firms received clearance to assemble electric cars and SUVs.

Despite progress, uptake remains slow compared to global peers. High upfront costs, inadequate charging infrastructure, and financing hurdles are cited as key challenges. Transport accounts for nearly 10% of Pakistan’s carbon emissions and contributes to a $16 billion annual oil import bill—issues the government hopes the new policy will address.

According to the document, the NEV Policy 2025–2030 seeks to “reduce vehicular emissions, improve air quality, enhance productive use of excess electricity, and cut oil imports.”

Subsidies and Incentives
The policy introduces demand-side subsidies to bridge the cost gap with conventional vehicles: Rs65,000 ($230) for two-wheelers, Rs400,000 ($1,420) for three-wheelers, and up to Rs15,000 ($53) per kilowatt-hour of battery capacity—or 5% of invoice value—for cars and commercial vehicles. Priority will be given to two- and three-wheelers, which account for 87% of Pakistan’s vehicle population and mainly serve low-income groups.

Charging Infrastructure
Plans include 3,000 charging stations nationwide by 2030, with 40 fast chargers on highways and motorways within six months. Oil marketing companies will be required to convert 10% of their fuel stations into EV charging points, while a new national tariff of Rs39.7 ($0.14) per kWh has been set for commercial charging.

Funding Mechanism
Subsidies and infrastructure will be financed by a levy on the import and first sale of petrol and diesel vehicles, expected to generate Rs122 billion ($430 million) during the policy period. The revenues will be ring-fenced to support the NEV program.

Long-Term Goals
Targets include making 30% of new vehicle sales electric by 2030, rising to 50% by 2040, with a net-zero transport fleet by 2060. Islamabad will serve as a pilot “electric mobility city,” with provinces encouraged to replicate the model. From 2027, all federal government purchases of two- and three-wheelers must be electric, with only NEVs allowed for official use thereafter.

Officials estimate the measures could prevent 4.5 million tons of carbon dioxide emissions by 2030 while creating new industries in battery manufacturing, software development, and smart mobility solutions.