The federal government has allocated Rs. 9 billion in subsidies for the purchase of two and three-wheeled electric vehicles as part of its efforts to accelerate the transition toward cleaner and more fuel-efficient personal transport, with buyers of electric motorcycles eligible for a subsidy of up to Rs. 80,000 per unit under the new scheme.
The subsidy framework was discussed during a briefing presented to the Senate Standing Committee on Industries and Production, during which officials said the National Electric Vehicle Policy is progressing successfully and that a significant share of road traffic is expected to shift to battery-powered vehicles within the next few years. The Rs. 80,000 per unit subsidy for electric motorcycles is designed to meaningfully reduce the upfront cost barrier that has so far limited mass adoption of electric two-wheelers, particularly among lower and middle income households for whom the price premium over conventional petrol motorcycles has remained a practical obstacle despite growing awareness of the long-term fuel cost savings that electric vehicles offer.
Pakistan is expected to have 2.2 million electric vehicles on its roads by 2030, according to the same briefing, a target that reflects ambitious projections for the rate at which consumers and commercial operators will shift from petrol-powered to battery-powered personal and light commercial transport. According to official figures, more than 12,800 electric vehicles and 160,000 electric motorcycles have already been manufactured locally, indicating that domestic production capacity is being established in parallel with the subsidy-driven demand creation effort rather than relying entirely on imports.
The Rs. 9 billion subsidy allocation sits within a broader policy push that includes separate provincial-level electric vehicle initiatives in Punjab and Sindh, which have independently advanced electric bus procurement, electric bike sharing services, and student motorcycle schemes during the same budget cycle, collectively indicating that both the federal and provincial governments are treating electric vehicle adoption as a coordinated national priority rather than an isolated programme.
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