Pakistan Launches National Electric Vehicle (NEV) Policy 2025-30

Islamabad, pakistan – In a landmark move towards sustainable transportation, the Pakistan government officially launched the National Electric vehicle (NEV) Policy 2025-30 on Thursday, June 19, 2025. The policy aims to have 30% of all new vehicles sold in Pakistan be electric by 2030, marking a significant shift in the country’s automotive landscape.

Key Objectives and Projections of the NEV Policy

Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, hailed the policy as a “historic and transformative step” towards industrial, environmental, and energy reforms. The NEV policy aligns with the Prime Minister’s vision of promoting clean, sustainable, and affordable transportation while bolstering local industry and safeguarding the environment.

The transition to electric vehicles is projected to yield considerable economic and environmental benefits. Pakistan anticipates saving 2.07 billion liters of fuel annually,which translates to nearly $1 billion in foreign exchange savings. Furthermore, the policy is expected to reduce carbon emissions by 4.5 million tons each year and decrease healthcare-related costs by $405 million annually.

Did You Know? The transport sector is a major contributor to carbon emissions in Pakistan, making reforms in this area crucial for environmental sustainability.

Financial Incentives and Subsidies

To encourage the adoption of electric vehicles, the government has allocated an initial subsidy of Rs9 billion for the fiscal year 2025-26. This subsidy will facilitate the purchase of 116,053 electric bikes and 3,171 electric rickshaws. Notably,25% of the subsidy is reserved for women,promoting their access to safe,affordable,and eco-friendly mobility.

A fully digital platform has been introduced to ensure obvious online application, verification, and disbursement of subsidies. This streamlined process aims to make it easier for citizens to take advantage of the incentives.

Infrastructure Development for Electric Vehicles

Recognizing the importance of infrastructure, the NEV policy outlines the installation of 40 new EV charging stations on motorways, with an average distance of 105 kilometers between them. this will help alleviate range anxiety and encourage long-distance travel in electric vehicles. 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.

Pro Tip: Consider installing a home charging station to take full advantage of off-peak electricity rates and reduce your charging costs.

Boosting Local Manufacturing and SME Support

to encourage local manufacturing, the government is providing incentives to domestic producers. Currently,over 90% of parts for two- and three-wheelers are already manufactured locally. Special support packages will be introduced for small and medium enterprises (SMEs) to further boost localization. the automotive Industry development and Export Plan (AIDEP) tariff facility will continue until 2026 and be phased out gradually by 2030.

according to the Ministry of Industries and Production, locally produced goods are 30-40% cheaper than imported alternatives. The government has also provided exemptions on customs duties and sales tax on EV parts to support the local industry.

Environmental and Economic Impact

The NEV policy is expected to yield savings of approximately Rs800 billion over the next 24-25 years through reduced fuel imports, the use of cheaper electricity, and revenue from carbon credits. Charging vehicles with electricity will also reduce capacity payments from Rs174 billion to Rs105 billion, and carbon credits could generate around Rs15 billion in revenue.

Pakistan’s total energy demand for EVs over the next five years is projected at 126 terawatt-hours, which can be met using the existing surplus in the national grid. An electric rickshaw or bike user is expected to recover their initial investment within 1 year and 10 months due to the low cost of charging compared to petrol.

Stakeholder Involvement and Policy Oversight

The NEV 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.

Haroon Akhtar Khan emphasized that the NEV policy 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 would work together to realize this vision of a clean,modern,and sustainable transport system.

Given Pakistan’s vulnerability to climate change, the EV policy will substantially contribute to achieving global carbon reduction targets. the policy is a decisive move toward clean energy, sustainable transportation, and industrial development.

Looking Ahead

The National Electric Vehicle Policy 2025-30 represents a comprehensive and results-driven strategy that aims to lead Pakistan toward a cleaner and more resilient future. With its focus on financial incentives, infrastructure development, and local manufacturing, the policy has the potential to transform pakistan’s automotive industry and contribute to a more sustainable environment.

What are your thoughts on the potential impact of the NEV policy on Pakistan’s economy and environment? How can individuals and businesses contribute to the successful implementation of this policy?