ISLAMABAD – Pakistan is making significant strides toward boosting the electric vehicle (EV) sector, with new policies aimed at encouraging the adoption of electric bikes, rickshaws, and vehicles.
The Secretary of Industry and Production told a National Assembly committee that a major subsidy of Rs80,000 is being offered on electric bikes priced at Rs250,000.
This comes as part of the government’s ongoing efforts to promote clean energy and reduce reliance on imported fuels.
In addition, the price of charging for electric vehicles has been reduced. The cost per unit at charging stations has been slashed from Rs92 to Rs39.07. Charging station owners have been given the flexibility to charge a price of their choosing, with oversight provided by regulatory bodies.
He further emphasized that the electric two- and three-wheelers market is growing rapidly. A target has been set to produce one hundred thousand electric vehicles (EVs) this year, with demand outpacing expectations, especially from Punjab.
The government is working to encourage local manufacturing of electric vehicles and components, including batteries and spare parts. Within two years, the plan is to produce 100% of the spare parts locally. Failure to meet this target will result in the removal of subsidies for manufacturers.
As of 2024, over 76,000 electric vehicles are already on the roads in Pakistan, with a target to achieve 30% of total vehicle sales in the country by 2030. To support this transition, the government aims to set up 3,000 charging stations across Pakistan in the coming years.
During the meeting, the committee raised concerns about contradictions in the policy, specifically regarding tax exemptions for two- and three-wheeled EVs and new taxes on hybrid vehicles post-budget approval. However, the Secretary confirmed that the International Monetary Fund (IMF) had agreed to the policy, with significant financial backing, including a 1.4 billion dollar financing package and an 1.8 million dollar grant from the International Finance Corporation (IFC).
The government expects the EV policy to save the country around one billion dollars annually on oil imports and reduce healthcare costs by approximately 450 million dollars due to improved air quality.
