ISLAMABAD – Pakistan has officially launched its National Electric Vehicle (NEV) Policy 2025–30, aiming to foster clean mobility, reduce carbon emissions, and strengthen the domestic auto industry. The policy was introduced by Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, during a press conference alongside Ministry Secretary Saif Anjum and EDB CEO Engr. Khuda Bukhsh.
Haroon Akhtar emphasized that the transport sector is a major source of carbon emissions in Pakistan and requires urgent reform. He stated that the policy is in line with the Prime Minister’s vision of a cleaner, greener, and more inclusive transport system, while also fulfilling Pakistan’s climate commitments under the Paris Agreement.
A key goal of the policy is to ensure that 30% of all new vehicles sold by 2030 are electric. This transition is expected to save around 2.07 billion liters of fuel annually—equivalent to nearly $1 billion in foreign exchange—and reduce carbon emissions by 4.5 million tons. Healthcare savings due to improved air quality are projected at $405 million per year.
Currently, 61 licenses have been issued for electric motorbike and three-wheeler manufacturing, with two licenses granted for electric car production. For FY2025–26, a Rs. 9 billion subsidy has been allocated to support 116,053 electric bikes and 3,171 electric rickshaws. Notably, 25% of this subsidy is reserved for women to ensure safer and more affordable transportation options.
Over the five-year period, the total subsidy will exceed Rs. 100 billion, with the same 25% reserved for female users. A digital platform will manage applications and disbursements to ensure transparency and efficiency.
To support EV infrastructure, 40 new charging stations will be installed along motorways, spaced approximately 105 km apart. The policy also includes initiatives such as battery swapping systems, vehicle-to-grid (V2G) integration, and EV charging provisions in updated building codes.
Incentives are also being extended to local manufacturers, especially SMEs, to promote localization. Currently, over 90% of components for electric two- and three-wheelers are already produced domestically. The existing AIDEP tariff facility will continue until 2026 and be phased out by 2030.
The NEV Policy was developed in consultation with more than 60 experts and stakeholders, under the supervision of a steering committee led by the Ministry of Industries and Production since September 2024. The committee will conduct regular reviews, and the Auditor General of Pakistan will carry out biannual performance audits.
Haroon Akhtar concluded that the policy is not just an environmental initiative but a comprehensive roadmap for industrial growth, job creation, energy savings, and technological independence. He urged collaboration between federal and provincial governments, the private sector, and the public to realize a clean and modern transportation future for Pakistan.
