Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, officially launched Pakistan’s National Electric Vehicle (NEV) Policy 2025–30, describing it as a landmark initiative toward transforming the country’s transport, energy, and industrial sectors. During a press conference held alongside Secretary Ministry of Industries and Production Saif Anjum and CEO of Engineering Development Board Engr. Khuda Bukhsh, Haroon emphasized that the policy is aligned with the Prime Minister’s broader vision for clean, affordable, and locally-driven mobility solutions.
The policy aims to reduce the transport sector’s significant contribution to carbon emissions while promoting environmental protection, energy security, and local industrial growth. Haroon noted that the shift to electric vehicles supports Pakistan’s commitments under the Paris Agreement and will play a key role in curbing fossil fuel consumption and urban air pollution. One of the policy’s central goals is to ensure that 30 percent of all new vehicle sales in Pakistan are electric by 2030, a transition projected to save 2.07 billion liters of fuel annually, which translates to nearly $1 billion in foreign exchange savings.
The NEV Policy outlines a comprehensive support structure that includes an initial allocation of Rs. 9 billion in subsidies for the fiscal year 2025–26. Under this scheme, 116,053 electric bikes and 3,171 electric rickshaws will be facilitated. Notably, 25 percent of the subsidy is reserved for women, promoting gender-inclusive access to affordable and eco-friendly transport options. Over the full five-year program, a cumulative subsidy exceeding Rs. 100 billion has been earmarked, with the same percentage set aside for women throughout the period.
To streamline implementation, a fully digital platform has been introduced for the transparent processing of subsidy applications, verifications, and disbursements. The policy also mandates the installation of 40 new EV charging stations along motorways, with an average distance of 105 kilometers between them, to support intercity electric mobility. In urban areas, provisions for battery swapping stations, vehicle-to-grid (V2G) schemes, and mandatory integration of EV charging infrastructure in new building codes have been incorporated.
To boost local manufacturing, the policy includes incentives for domestic production. Haroon highlighted that more than 90 percent of components for electric two- and three-wheelers are already manufactured within Pakistan. The government plans to introduce special support packages for small and medium enterprises to encourage deeper localization of EV parts and technology. Currently, 61 licenses have been issued for manufacturing electric motorbikes and rickshaws, while two licenses are in place for producing electric cars. The AIDEP tariff facility will remain available until 2026, with a gradual phase-out planned by 2030.
The policy was developed with input from over 60 experts, institutions, and industry stakeholders, under a steering committee established by the Ministry of Industries and Production since September 2024. The committee will continue overseeing implementation through regular monthly and quarterly review meetings, while the Auditor General of Pakistan will conduct performance audits every six months. Saif Anjum added that the government expects to save Rs. 833 billion over the next five years, including Rs. 174 billion through surplus electricity usage, Rs. 105 billion from health and productivity gains, and Rs. 15 billion in avoided carbon emission costs.
