The government has issued licenses to 57 electric vehicle (EV) manufacturers, marking a key milestone in Pakistan’s push towards green transportation solutions and tackling climate change. This initiative is part of a broader effort to establish a more sustainable transport system in the country.
Pakistan’s National Electric Vehicles Policy (NEVP), launched in 2019, sets ambitious goals for the EV sector. By 2030, the policy aims for electric vehicles to make up 30% of all passenger and heavy-duty truck sales, with a more aggressive target of 90% by 2040. The policy also targets 50% electric sales for two- and three-wheelers, as well as buses, by 2030, rising to 90% by 2040.
To support local EV production, the government has issued licenses to 55 manufacturers for two- and three-wheelers and two manufacturers for four-wheelers. Plans are also underway to establish charging stations, including fast chargers and battery swapping stations, to bolster the country’s EV infrastructure.
Incentives are being offered to consumers, such as free vehicle registration, exemption from annual token fees, and toll tax relief, as part of the government’s new EV policy. Additionally, electric vehicle zones are planned for each province, including Islamabad, to further encourage EV adoption.
However, the pace of EV production has drawn some criticism. A Senate Standing Committee recently pointed out that only 60,000 EVs were produced in Pakistan by the end of 2024, falling short of the target of 600,000.
To stimulate demand, the government has also reduced the power tariff for EV charging stations by 45%, from Rs71.10 ($0.14) per unit to Rs39.70. This price cut is expected to be implemented by the end of February, with the government forecasting a return on investment of more than 20% for sector investors.
In its efforts to reduce reliance on petroleum, the energy ministry plans to convert one million two-wheelers to electric bikes, potentially saving $165 million annually in fuel imports. Currently, more than 30 million two- and three-wheel vehicles in Pakistan consume over $5 billion in petroleum each year.
