The government has granted licences to 57 manufacturers of electric vehicles (EVs), marking a significant step in the government’s plan to transition to green transport solutions and combat climate change. The move aligns with Pakistan’s broader goal of achieving a cleaner, more sustainable transportation system.
The government’s National Electric Vehicles Policy (NEVP), approved in 2019, sets ambitious targets for the EV sector. By 2030, the policy aims for electric vehicles to account for 30% of all passenger vehicle and heavy-duty truck sales, with an even more ambitious target of 90% by 2040.
The policy also sets targets for two- and three-wheelers, as well as buses, aiming for 50% of new sales to be electric by 2030 and 90% by 2040.
To promote local EV production, the government has issued licenses to 55 manufacturers for the production of two- and three-wheelers, and two manufacturers for four-wheeler assembly.
According to Radio Pakistan, plans are underway to establish charging stations, including fast chargers and battery swapping stations, to support the growing EV infrastructure.
In addition to manufacturing efforts, the government is offering incentives to consumers under the new EV policy. These incentives include free registration, exemption from annual token fees, and toll tax exemptions.
There are also plans to establish electric vehicle zones in each province, including Islamabad, to further promote EV adoption.
Despite these advancements, the pace of EV production has faced criticism. A Senate Standing Committee recently highlighted that only 60,000 EVs had been produced in Pakistan by the end of 2024, falling short of the target of 600,000.
In an effort to boost EV demand, the government has reduced the power tariff for EV charging station operators by 45%. This tariff reduction, which lowers the cost from Rs71.10 ($0.14) per unit to Rs39.70, is expected to be implemented by the end of February. T
he government anticipates a return on investment exceeding 20% for investors in the sector.
Additionally, the energy ministry is focusing on reducing the country’s reliance on petroleum. Currently, more than 30 million two- and three-wheeled vehicles in Pakistan consume over $5 billion worth of petroleum annually.
As part of its energy reforms, the government plans to convert one million two-wheelers to electric bikes, saving around $165 million in fuel import costs each year.
