Islamabad: The federal government on Thursday officially launched the National Electric Vehicle (NEV) Policy 2025–30, announcing an initial subsidy of PKR 9 billion for the promotion of electric vehicles (EVs) in the upcoming fiscal year.

Speaking at the launch event, Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, described the policy as a “historic and transformative step” towards achieving Pakistan’s goals of sustainable transportation, industrial growth, and environmental protection.

According to the Ministry of Industries and Production, the PKR 9 billion subsidy will support the rollout of 116,053 electric bikes and 3,171 electric rickshaws during FY2025–26. Notably, 25% of this subsidy has been reserved for women to ensure access to safe and affordable mobility options.

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The NEV policy sets a target of making 30% of all new vehicles sold in Pakistan electric by 2030. This transition is expected to save 2.07 billion litres of fuel annually, translating into nearly USD 1 billion in foreign exchange savings. Additionally, the policy is projected to reduce carbon emissions by 4.5 million tons and cut healthcare-related costs by approximately USD 405 million each year.

The policy also outlines a range of supporting measures including the installation of 40 EV charging stations along Pakistan’s motorways, the introduction of battery swapping and vehicle-to-grid (V2G) systems, and updates to building codes to integrate EV charging infrastructure.

To promote domestic manufacturing, the government has extended incentives for local production of EV parts. Over 90% of components for two- and three-wheelers are currently manufactured locally. A support package for small and medium enterprises (SMEs) is also part of the policy to boost localisation.

The Automotive Industry Development and Export Plan (AIDEP) tariff facility will continue until 2026, with a phased withdrawal planned by 2030. The government also plans to launch more digital platforms to manage subsidy applications and disbursements transparently.

The NEV policy was developed through consultations with over 60 experts and stakeholders under a steering committee led by the Ministry of Industries and Production. The committee will hold regular reviews, and the Auditor General of Pakistan will conduct biannual performance audits.

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Officials highlighted that the total energy demand for EVs over the next five years is expected to be 126 terawatt-hours—well within the country’s existing surplus electricity generation capacity.

According to Haroon Akhtar, locally produced EVs are 30–40% cheaper than imported alternatives, and electric two-wheelers are expected to pay back the higher upfront cost through fuel savings in less than two years.

The policy aims to create a robust EV ecosystem in Pakistan, offering financial incentives, encouraging private sector participation, and reducing dependence on fossil fuels. The government expects the policy to generate around PKR 800 billion in economic value over the next 24–25 years through reduced fuel imports, carbon credits, and lower capacity payments.

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