ISLAMABAD (TNS) Prime Minister of Pakistan Shehbaz Sharif has directed to formulate a comprehensive action plan at the government level for the access of electric vehicles to the common man. Prime Minister Shehbaz Sharif has taken major decisions for the promotion of electric vehicles.
In this context, the government will provide electric rickshaws and loaders to the unemployed for employment on a priority basis. The meeting was chaired by the Prime Minister on the encouragement of electric vehicles, government assistance in the acquisition of electric bikes, rickshaws and loaders. In which federal ministers Ahad Khan Cheema, Attaullah Tarar, Special Assistant Haroon Akhtar, Chief Coordinator Musharraf Zaidi and relevant senior officials participated.
On this occasion, the Prime Minister said that the federal government, including the federal board, will provide electric bikes to the toppers of boards across the country. Encouraging electric vehicles will save billions of dollars in valuable foreign exchange in terms of fuel, help in environmental protection and promote local industry. He directed that a comprehensive plan of measures be formulated at the government level to make electric vehicles accessible to the common man, and steps be taken to create a complete ecosystem for the production and maintenance of electric vehicles in the country. Third-party validation of the entire mechanism of distribution of electric vehicles and government assistance in it should be done. Priority should be given to people belonging to the economically weaker section in the government’s scheme to encourage electric vehicles and in this, government assistance. A public awareness campaign should be launched about the government assistance scheme in acquiring electric vehicles. The Prime Minister directed to ensure that the best quality of electric bikes, rickshaws and loaders provided in the proposed scheme and their safety standards are met. Earlier, the meeting was briefed on the current situation of the industry regarding the production of electric vehicles in the country and the government assistance measures for their access to the common man. The government is taking steps to support the acquisition of electric bikes, rickshaws and loaders through low-cost and easy-to-use loans. Government assistance will be provided to the public in obtaining more than one lakh electric bikes and more than three thousand rickshaws and loaders on easy terms and at low cost. Under this scheme, free electric bikes will be provided to students who have shown high performance at the intermediate level in educational boards across the country, including the Federal Board. In this scheme, a special quota of 25% has been kept for women, while the quota of the remaining provinces has been allocated in proportion to the population. The Prime Minister also directed to increase the quota of Balochistan to 10%. The meeting was further informed that thanks to this scheme, 4 new battery manufacturing companies are starting their operations in the country, which will provide new business opportunities and employment in Pakistan. The Prime Minister directed to ensure the early launch of the scheme based on these suggestions. In this context, it should be remembered that on June 19, 2025, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan officially launched the National Electric Vehicle Policy 30-2025. According to a statement by the Ministry of Industries and Production, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan had said that the new Electric Vehicle (EV) Policy 30-2025 introduced by the government will not only stabilize the country’s economy but will also be helpful in protecting Pakistan from the devastating effects of climate change. He said that the National Electric Vehicle Policy 30-2025 has been formally launched, describing this policy as a historic and revolutionary step towards Pakistan’s industrial, environmental and energy reforms. The policy has been developed in accordance with the vision of the Prime Minister of Pakistan, which aims at clean, sustainable and affordable transport, environmental protection, and the development of local industry. This policy is not only part of national development but also a practical fulfillment of the commitments made by Pakistan under the Paris Climate Agreement. The transport sector is a major source of carbon emissions in Pakistan, and its reform has become inevitable. Among the major goals of the policy, a target has been set to make 30% of new vehicles electric by 2030. It will be possible to save 2.07 billion liters of fuel annually, which will save about one billion US dollars in foreign exchange. 4.5 million tons of carbon emissions will be reduced, and $405 million in annual public health expenditure is expected to be reduced. An initial allocation of Rs. 9 billion has been made in the form of subsidies for the fiscal year 2025-26.Under which the provision of 116,053 electric bikes and 3,171 electric rickshaws will be made possible. It was also announced that the National Electric Vehicle Policy 2025-30 has been formally launched, calling this policy a historic and revolutionary step towards Pakistan’s industrial, environmental and energy reforms. This policy has been prepared in accordance with the vision of the Prime Minister of Pakistan, which aims at clean, sustainable and affordable transport, environmental protection, and the development of local industry. This policy is not only part of national development but also a practical fulfillment of the commitments made by Pakistan under the Paris Climate Agreement. The transport sector is a major source of carbon emissions in Pakistan, the reform of which has become inevitable. Among the major goals of the policy, a target has been set to make 30% of new vehicles electric by 2030, which will save 2.07 billion liters of fuel annually, which will save about one billion US dollars in foreign exchange. 4.5 million tons of carbon emissions will be reduced, and $405 million in annual public health spending is expected to be reduced. An initial Rs9 billion has been allocated for subsidies for the fiscal year 2025-26, under which 116,053 electric bikes and 3,171 electric rickshaws will be provided. 25 percent of the subsidy will be reserved for women so that they can have easy, affordable and eco-friendly means of transportation, he said, adding that a complete digital platform has also been introduced, through which the application for subsidy and the release of money will be done online, which will ensure transparency. Under the policy, 40 new electric vehicle charging stations will be installed on motorways, with an average distance of 105 km between them, in addition to battery swapping systems, vehicle-to-grid schemes and the inclusion of EV charging points in new building codes will be made mandatory. These measures will promote the use of EVs in urban areas and create convenience for the public. Under the policy, incentives are being given to local manufacturers so that maximum local production of electric vehicles is possible. 90 percent of parts in 2 and 3 wheelers are already being manufactured locally, special packages will be introduced for small and medium enterprises, he said, adding that the AIDEP tariff facility will continue till 2026, which will be phased out by 2030. More than 60 experts, institutions and industrialists were consulted in the formulation of the policy, this consultation was ongoing since September 2024 and was guided by a steering committee under the supervision of the Ministry of Industries and Production. The Steering Committee will hold a review meeting every month and every quarter. The Auditor General of Pakistan will audit the policy measures every 6 months. The National Electric Vehicle Policy 30-2025 is not only an environmental revolution for Pakistan, but it also lays the foundation for industrial development, local employment, energy conservation and self-reliance in technology. The federal and provincial governments, the private sector and the public will work together to make this vision a reality so that Pakistan can move towards a clean, modern and sustainable transport system. The National Electric Vehicle (NEV) Policy 30-2025 is not only a breakthrough in Pakistan’s transport sector but also a decisive step towards industrial development, energy conservation and climate change. It is a comprehensive, comprehensive and results-oriented strategy that will lead Pakistan towards a clean and sustainable future. The government’s vision is to create a clean, sustainable and self-sufficient industrial model. Products manufactured locally in Pakistan are 30 to 40 percent cheaper than imported products. In the two-wheeler sector, more than 90 percent of parts are now being manufactured locally. Countries like Pakistan, which are among the most environmentally sensitive regions, are more exposed to the effects of pollution and climate change. The electric vehicle policy will play a significant role in achieving global goals of reducing carbon emissions. Through this policy, Pakistan is expected to save about Rs 800 billion in total in the next 24 to 25 years, which includes reduced fuel imports, use of cheap electricity and income from carbon credits. As a result of charging vehicles with electricity, the payment in terms of capacity payment is expected to decrease from Rs 174 billion to Rs 105 billion, and an income of Rs 15 billion can be obtained in the form of carbon credits. He further said that the total energy requirement in the next five years will be There will be 126 terawatts in years, which can be easily met with the surplus electricity in the national grid. A rickshaw or motorcycle driver will get back his initial investment in a year and 10 months, as the cost of charging is much lower than that of petrol. For example, if the additional cost of an electric motorcycle is Rs 150,000, this amount will be recovered in just two and a half years from fuel savings. Customs duty and sales tax have been exempted on components used in the manufacture of electric vehicles to promote the industry at the local level. Pakistan should embrace this policy wholeheartedly as it is a game changer for the economy, environment and industry. Remember that there is a movement towards electric vehicles in Pakistan, especially in the context of the government’s Electric Vehicle Policy 2025, there is a growing presence of global EV brands such as Depal, BYG and MG,Electric vehicle experts say that Pakistan does not yet have a comprehensive system in place that can enable large-scale EV adoption, such as charging networks and other basic infrastructure. Automobile consultant Shafiq Sheikh says that the electric vehicle sector in the country is like a newborn baby. If we are expecting that in a day or two this sector will start performing like the decades-old petrol vehicle system, then this is a wrong expectation and not a suitable comparison. It cannot be denied that the federal government is making serious efforts in this sector, its National Electric Vehicle Policy 2025-30 aims to promote electric vehicles in the country and enable sustainable transportation. Another EV policy is also under consideration, and several investors are working with the government on easy-to-access infrastructure. If the government’s support continues, in a few years we will definitely see a better and more reliable infrastructure, quality spare parts, services and electric vehicles with advanced features. This is a positive sign that EV companies from all over the world are interested in setting up their plants in Pakistan. The future of EVs and their infrastructure is indeed bright. Auto industry expert Syed Shabbiruddin says that Pakistan’s EV policy 2025 is right in direction, but weak in structure. Since battery prices are falling globally, a large-scale transition to EVs is expected by 2027. Pakistan has to take action now, otherwise we risk becoming a dumping ground for old technology, and just assembling imported EVs is not enough. The country should focus on local manufacturing of critical and valuable components like DC chargers, charging cables and EV motors, especially when we have raw materials like copper. Critical dual-use components, such as braking systems and automotive-grade cold-rolled coil (CRC) steel, should also be manufactured locally. There is no reason why suppliers like Continental AG, Esen or Valvo should not be present in Pakistan. The fundamental flaw in our policy-making is our short-term vision. A five-year policy barely gives the industry enough time to adapt and then the next policy change sets back all the progress. There can be no compromise on a stable and incentive-rich 10-year framework. If this does not happen, Pakistan will fall further behind its regional competitors, who are already moving rapidly in the EV industry. On the other hand, MG Motors Pakistan General Manager Marketing Syed Asif Ahmed said that when the New Energy Vehicle (NEV) policy is approved, it will put Pakistan among the ranks of developed countries in the ranking of zero-emission vehicles. This policy has the potential to significantly reduce transport-related costs, which are currently responsible for 43% of air pollution in the country. By promoting zero-tailpipe emission vehicles, this policy can help improve air quality in urban areas and reduce smog. Reduced particulate matter in the air means fewer respiratory illnesses and better public health outcomes. This policy is also aligned with Pakistan’s broader environmental goals, which include transitioning the transport fleet to a net-zero carbon footprint by 2060. It also takes advantage of Pakistan’s 37% renewable energy-based electricity system, so that electric vehicles are clean “from source to road”. NEVs (New Energy Vehicles) include all vehicles that have zero-emission capability, including plug-in hybrid electric vehicles (PHEVs), fully electric vehicles (EVs) and hydrogen fuel cell vehicles. In the past, under pressure from automotive companies, Developing countries also had to recognize hybrid vehicles as NEVs so that they could benefit from tax breaks. These subsidies were neither environmentally friendly nor did they benefit the average consumer. The real benefit was only for the foreign principal and local partner, while the public, the government, and the local environment were left out. Plug-in hybrid vehicles (PHEVs) are a better urban transport solution than regular hybrids because they provide a full electric range. They also protect early adopters from range anxiety during long journeys, as they automatically switch to hybrid mode when the battery runs out. Pakistan’s New Energy Vehicle (NEV) targets, such as zero emissions and fuel efficiency, are in line with global trends, although the timeframe is somewhat slower than that of the US, China and India. In this context, automobile assemblers in Pakistan, with the help of their global partners, will introduce more PHEV variants, which will reduce the country’s fuel bill and also reduce the smoke emitted from vehicles. However, it remains to be seen whether the benefits of the tax incentives given by the government reach consumers, or they will once again be forced to buy expensive hybrid vehicles.
