Pakistan New Energy Vehicle Policy 2025-30

The New Energy Vehicle Policy 2025‑30 (NEV Policy) is Pakistan’s fresh roadmap to shift its transport sector from fossil fuels to electric and low-emission vehicles. Launched in June 2025 by the Ministry of Industries & Production, it sets a target of 30% of all new vehicle sales to be electric by 2030. The policy also outlines support for local manufacturing, charging infrastructure, and deep industrial reform.

Why this policy matters

From hands-on experience in the automotive sector, I can say this policy is a game-changer. Pakistan imports billions in fuel annually – switching to electric vehicles (EVs) means fewer imports, less environmental damage, and more local jobs. According to the official announcement, the policy could save about 2.07 billion litres of fuel per year and reduce carbon emissions by 4.5 million tons annually. It also plans to cut healthcare costs related to pollution by around US$405 million annually.

Targets & Timeline

The policy breaks down its ambitions in clear stages covering different vehicle types.

Vehicle adoption targets (2025-30)

Vehicle Type	2025-26	2026-27	2027-28	2028-29	2029-30	Total (5 yrs)
2-Wheelers	116,053	246,728	393,408	557,590	740,898	2,054,676
3-Wheelers	3,171	6,644	10,442	14,588	19,106	53,950
4-Wheelers (cars/LCVs)	5,947	12,369	19,296	26,758	34,785	99,155
Buses, vans etc.	144	291	443	599	760	2,238
Trucks/Heavy LCVs	186	382	588	806	1,034	2,996
Total vehicles	125,415	266,415	424,178	600,340	796,582	2,213,015

Infrastructure and manufacturing

• The policy commits to 3,000 public charging stations by 2030, including motorway fast-charging points.
• Local manufacturing incentives: Parts for 2- and 3-wheelers are already 90% domestically made and the policy pushes further localisation.
• Fiscal measures: Initial Rs 9 billion subsidy in 2025-26 for 116,053 e-bikes and 3,171 e-rickshaws, with 25% of subsidy reserved for women.

Major Policy Interventions

• Import and tax incentives: Customs duty and sales tax exemptions for EV components, and phasing out incentives for internal combustion engine (ICE) vehicles.
• Regulatory framework: Vehicle-to-grid (V2G) tech, battery-swapping stations, mandatory EV charging in new building codes.
• Digital platform & monitoring: Fully digital portal for subsidy applications; steering committee and Auditor General audits built-in.

Benefits & Practical Impacts

• Fuel savings & foreign exchange: Reducing ~2.07 billion litres of fuel annually could save nearly US$1 billion in import bills.
• Environmental and health gains: 4.5 million tons of CO₂ emissions saved; fewer urban air pollution illnesses.
• Job creation & industry boost: Local manufacturing of EVs and parts opens new jobs and a growth corridor for SMEs.
• Cost-effectiveness for users: For example, an electric bike with higher initial cost can pay back within ~2 years via fuel savings.

Implementation Challenges

From working with stakeholders I’ve observed the following practical hurdles:

• Charging infrastructure rollout needs to keep pace with vehicle uptake, especially outside big cities.
• Consumer awareness remains low: Many buyers still remain sceptical of EVs, service networks, and resale value.
• Local manufacturing scale-up will take time; quality and parts supply need to catch up.
• Financial burden on EV incentives and subsidy sustainability must be balanced with fiscal constraints.

What This Means for Consumers

If you’re considering an electric vehicle in Pakistan:

• Check whether your city has charging options or access to the network planned under the policy.
• Understand potential cost savings: lower running cost, fewer parts, no tail-pipe emissions.
• Consider waiting for local models under new policy incentives, they may offer better value or features.
• Stay informed about subsidy eligibility and how regional tax/reg duty exemptions apply.

Next Steps & Outlook

Over the next couple of years you can expect:

• More local EV models launching in Pakistan, perhaps via joint ventures.
• Continued growth of charging infrastructure in major motorways and peri-urban areas.
• Shift in policy from incentives toward market-based EV adoption as scale builds.
• Gradual phasing-out of ICE vehicle advantages and stronger enforcement of emissions standards.

Conclusion

The NEV Policy 2025-30 lays a clear path for Pakistan’s mobility future: cleaner vehicles, local industry growth, and fewer fossil-fuel imports. While the journey ahead has real hurdles, especially infrastructure and consumer readiness, the direction is set. For anyone involved in automotive, energy or environmental sectors, and even end-users, this is a moment to stay tuned and possibly get ahead of the curve.

FAQs

1. What is the target EV share by 2030?
   30% of all new vehicle sales in Pakistan are to be electric by 2030.
2. What fuel-savings are expected?
   Approximately 2.07 billion litres of fuel saved annually.
3. What are the emission reduction goals?
   About 4.5 million tons of CO₂ emissions annually.
4. How many public charging stations are planned?
   Around 3,000 by 2030, including fast chargers on motorways.
5. What subsidies are available initially?
   Rs 9 billion in 2025-26 for e-bikes and e-rickshaws; includes special quota for women.
6. Does the policy support local manufacturing?
   Yes, incentives, duty exemptions and localisation targets are part of the framework.
7. What types of vehicles qualify as NEVs?
   Fully electric (BEV) for 2/3-wheelers; for 4-wheelers/LCVs PHEV qualifies if meets minimum electric range.
8. Is there a digital platform for subsidies?
   Yes, a fully digital application and verification platform is in place.
9. How will this affect consumers in remote areas?
   Infrastructure rollout remains slower there, users should check local readiness and costs.
10. How long will the policy incentives last?
    The policy covers 2025-30; incentives may evolve, and duty/tax regimes will gradually shift after that.