Key Points
- NEV Policy targets 30 per cent electric vehicle sales by 2030
- Consumer subsidies up to PKR 400,000 and 40 highway charging stations planned
- Policy leverages 126 TWh surplus electricity and offers free NEV registration to encourage provincial support
- Over 90 per cent localisation in EV two and three-wheelers achieved.
ISLAMABAD: Pakistan has launched its ambitious New Energy Vehicle (NEV) Policy 2025–2030, marking a significant step toward a cleaner and more sustainable future.
Unveiled at a high-level workshop here, the policy was hailed by Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, as a landmark initiative aligned with Prime Minister Shehbaz Sharif’s vision for a “Clean Air, Smog-Free and Pollution-Free Pakistan.”
Akhtar emphasised that the NEV Policy is not only an environmental strategy but also an economic lifeline for the country. “This policy will help us reduce 4.5 million tons of carbon dioxide emissions and save up to $1 billion in oil imports,” he stated. “It is a critical step forward for both our environment and our economy.”
Under the policy, the government aims to convert 30 per cent of all new vehicle sales in Pakistan to electric mode by 2030. The move is expected to alleviate the health burden caused by smog and air pollution, with potential savings of PKR 405 billion in related health costs.
To encourage consumer uptake, the government has introduced a comprehensive package of subsidies, including PKR 65,000 for electric two-wheelers, PKR 400,000 for electric three-wheelers, and PKR 15,000 per kilowatt-hour of battery capacity for electric four-wheelers.
Complementing these incentives, 40 high-speed EV charging stations are planned along national highways by the end of 2025, aimed at enhancing the accessibility and convenience of electric mobility.
Akhtar also revealed that surplus electricity, an estimated 126 terawatt-hours (TWh) is expected to power NEVs, turning a current energy surplus into a strategic advantage. “This is not just a transition — it’s an opportunity,” he said.
Provinces are being encouraged to support the policy with their own incentives, including free registration for NEVs, to ensure unified national adoption.
Highlighting industrial implications, Akhtar noted that 57 local manufacturing certificates have already been issued, with over 90 per cent localisation achieved in electric motorcycles and rickshaws. This positions Pakistan to become a regional hub for NEV production, attracting foreign investment and technology transfer.
According to the Special Assistant to the Prime Minister, the NEV Policy is anchored on five strategic pillars designed to ensure its effectiveness and sustainability. These include consumer subsidies aimed at lowering the upfront cost of electric vehicles, tariff protections to support and strengthen local manufacturers, and the development of essential infrastructure, particularly charging networks. The policy also emphasises the enforcement of quality and safety standards in line with international benchmarks, along with institutional and regulatory support to guarantee smooth and efficient implementation.
Wrapping up his address, Akhtar reaffirmed the government’s resolve to build “a sustainable, equitable, and globally competitive transport ecosystem.” As international interest in Pakistan’s NEV sector continues to rise, the policy marks a significant step towards a cleaner, greener future, he said. “This is not just policy. It’s a commitment to future generations.”
