Pakistan Launches National Electric Vehicle Policy 2025–30: A Game-Changer for Economy, Environment, and Industry

Islamabad – The Government of Pakistan has officially launched the National Electric Vehicle (NEV) Policy 2025–30, a bold and transformative initiative to overhaul the country’s transportation sector, reduce carbon emissions, and drive industrial modernization. The announcement was made by Special Assistant to the Prime Minister on Industries and Production, Mr. Haroon Akhtar Khan, during a press conference in Islamabad.

Calling the policy a “historic turning point,” Mr. Akhtar stated that the NEV Policy aligns with the Prime Minister’s vision of clean, sustainable, and affordable mobility while accelerating local industrial growth and ensuring environmental protection. “The transport sector is a major emitter of carbon in Pakistan,” he said. “This policy is critical for addressing both our climate goals and energy security challenges.”

Key Targets and Impact Projections

Under the policy, the government aims for 30% of all new vehicles sold in Pakistan by 2030 to be electric. This transition is expected to:

• Save 2.07 billion liters of fuel annually, equating to nearly USD 1 billion in foreign exchange.

• Reduce carbon emissions by 4.5 million tons.

• Cut healthcare costs by approximately USD 405 million per year due to improved air quality.

Fiscal Year 2025–26 Subsidy Plan

An initial Rs. 9 billion subsidy has been earmarked for fiscal year 2025–26, targeting:

• 116,053 electric bikes

• 3,171 electric rickshaws
  Importantly, 25% of the subsidy is reserved for women, promoting safe, affordable, and eco-friendly mobility for female commuters.

A fully digital platform has also been launched to ensure transparent application, verification, and disbursement of subsidies.

Infrastructure and Urban Integration

The policy mandates:

• Installation of 40 new EV charging stations along motorways (spaced every 105 km)

• Introduction of battery swapping and vehicle-to-grid (V2G) technology

• Mandatory EV charging infrastructure in new building codes

Industrial Localization and SME Support

To promote domestic manufacturing, the government has retained the AIDEP tariff facility until 2026, with a gradual phase-out by 2030. Over 90% of parts for electric bikes and rickshaws are already produced locally, and SMEs will be offered support packages to further boost local capacity. Locally produced goods are reported to be 30–40% cheaper than imports.

Long-Term Economic Benefits

The policy is projected to:

• Save Rs. 800 billion over the next 25 years via reduced fuel imports, low-cost electricity use, and carbon credits

• Cut capacity payments from Rs. 174 billion to Rs. 105 billion

• Generate Rs. 15 billion in carbon credit revenue

• Demand 126 TWh of electricity over 5 years, which can be met using the current surplus energy in the national grid

Consumers could recover the extra cost of an electric bike within 1 year and 10 months, thanks to lower charging costs compared to petrol.

Governance and Monitoring

The policy was developed over months through consultation with over 60 experts, institutions, and stakeholders, led by a steering committee under the Ministry of Industries and Production since September 2024. It will be subject to:

• Monthly and quarterly performance reviews

• Biannual performance audits by the Auditor General of Pakistan

Concluding Remarks

Mr. Akhtar stressed that the NEV Policy is not just a climate initiative but a foundation for energy efficiency, employment generation, and economic transformation. He urged federal and provincial governments, the private sector, and citizens to work collectively to implement the policy.

“This policy is a national imperative. It’s not just about electric vehicles—it’s about clean air, energy security, local industry, and a modern, self-reliant Pakistan,” he concluded.