Pakistan could save more than $1 billion in gross fuel imports by adding 30,000 range-extended electric vehicles (REEVs) annually for five years, industry analysts say.
The proposed 150,000-vehicle fleet could displace around 1.2 billion litres of petrol and avoid approximately 2.7 million tonnes of operational carbon emissions, although actual benefits would depend on mileage, charging sources and electric usage.
REEVs use electric motors for propulsion, while an onboard fuel-powered generator provides additional electricity when the battery needs support. Modern models can reportedly travel 150–180 kilometres on battery power alone, making home charging suitable for many daily journeys.
The economic case for EV adoption was also highlighted in PIDE’s December 2024 policy paper Future on Wheels, which noted that petroleum imports account for a significant share of Pakistan’s import bill.
Industry representatives said tariff concessions for qualifying REEVs, charging infrastructure and affordable financing could accelerate adoption. Analysts have recommended a stable 10-year auto policy, with incentives linked progressively to localisation, production scale and consumer protection.
They estimate that increasing annual REEV additions to 60,000 could broadly double the projected economic and environmental benefits under similar assumptions.
