The Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, launched the National Electric Vehicle (NEV) Policy 2025-30 on 19th June.

The policy is part of Pakistan's efforts to introduce changes in the industrial, environmental, and energy sectors.

At a press conference held with Secretary of the Ministry of Industries and Production, Saif Anjum, and Chief Executive Officer of the Engineering Development Board (EDB), Engineer Khuda Bukhsh, Khan stated that the policy is aligned with the Prime Minister's direction to promote electric mobility and domestic industrial activity.

He noted that the transport sector contributes significantly to carbon emissions in Pakistan, and stated that changes in this area are necessary.

Khan said the policy supports Pakistan's obligations under the Paris Agreement and aims to reduce fossil fuel use and air pollution in urban areas.

A key target of the policy is to ensure that 30% of all new vehicles sold in Pakistan by 2030 are electric. This shift is projected to result in annual savings of 2.07 billion litres of fuel and approximately US$ 1 billion in foreign exchange.

It is also expected to reduce carbon emissions by 4.5 million tons and healthcare-related expenses by US$ 405 million per year.

Currently, 61 licences have been issued for the manufacturing of electric motorbikes and three-wheelers, and two licences for the manufacturing of electric vehicles.

Mr Khan announced that a subsidy of PKR 9 billion (US$ 31.76 million) has been allocated for the fiscal year 2025-26. This allocation is intended to support the introduction of 116,053 electric bikes and 3,171 electric rickshaws. Of this amount, 25% has been reserved for female users to improve access.

The government has projected a cumulative subsidy exceeding PKR 100 billion over a five-year period, maintaining the same percentage allocation for women.

A digital platform has been launched for the application, verification, and disbursement of subsidies.

The policy also includes plans for 40 EV charging stations along the country's motorways, spaced at intervals of approximately 105 kilometres. Additional provisions include battery swapping systems, vehicle-to-grid (V2G) infrastructure, and the integration of EV charging points in future building codes.

To support local manufacturing, the policy includes incentives for domestic producers. At present, more than 90% of parts used in two- and three-wheelers are manufactured within the country. Further support measures are planned for small and medium-sized enterprises (SMEs) to encourage greater localisation.

The Automotive Industry Development and Export Plan (AIDEP) tariff facility will remain in effect until 2026 and will be gradually phased out by 2030.

Mr Khan noted that the policy was developed in consultation with over 60 experts, organisations, and industry representatives, under the guidance of a steering committee established by the Ministry of Industries and Production in September 2024.

The committee will conduct monthly and quarterly reviews of the policy's implementation. Additionally, the Auditor General of Pakistan will carry out performance audits every six months.

The SAPM stated that the NEV Policy 2025-30 has been developed as part of a broader strategy involving industrial development, employment, energy management, and technological capability in the country.

He called for participation from all levels of government, the private sector, and the public to support the policy's implementation.

In response to a question, Secretary Saif Anjum said the policy is projected to generate savings of PKR 833 billion over five years. These include PKR 174 billion from surplus electricity usage, PKR 105 billion from improvements in health and productivity, and PKR 15 billion through reduced carbon emissions.