ISLAMABAD – The government has officially launched the National Electric Vehicle (NEV) Policy 2025–30, aiming to reduce carbon emissions, cut fuel imports, and promote local manufacturing of electric vehicles (EVs).
Speaking at the launch, Prime Minister’s Special Assistant on Industries Haroon Akhtar Khan said the policy will not only strengthen Pakistan’s economy but also protect the country from the harsh effects of climate change. He called the policy a historic step toward clean, affordable, and sustainable transportation.
One of the major goals of the policy is to ensure that 30% of new vehicles by 2030 are electric. This shift is expected to save 2.07 billion liters of fuel annually, which translates to roughly $1 billion in foreign exchange. Additionally, it could reduce carbon emissions by 4.5 million tons and cut health-related expenses by $405 million each year.
To promote adoption, the government has allocated Rs9 billion in subsidies for the fiscal year 2025–26. This funding will help deliver over 116,000 electric bikes and more than 3,000 electric rickshaws. Notably, 25% of the subsidy is reserved for women to support affordable and eco-friendly mobility options for them.
The policy also includes infrastructure upgrades like installing 40 electric charging stations along motorways, with an average distance of 105 km between them. New building codes will require EV charging points, and battery-swapping systems will also be introduced for ease of use in urban areas.
To further localize EV production, the government has offered tax breaks on EV parts and extended incentives under the AIDEP tariff facility until 2026. Haroon Akhtar Khan emphasized that this policy could save Pakistan up to Rs800 billion over the next 25 years and urged all stakeholders to join hands in making this clean transportation vision a reality.