The federal government has announced Pakistan’s new Electric Vehicles (EV) Policy 2025, which aims to cut fuel imports, support clean transport, and grow the local EV industry. The five-year plan is part of a larger shift towards green energy and is expected to save around 2.7 billion litres of petrol every year, reducing oil import costs by about $1 billion annually.
A big part of the policy is a Rs9 billion subsidy in the upcoming budget to make electric bikes and rickshaws more affordable. Over 116,000 e-bikes and more than 3,000 e-rickshaws will benefit from this subsidy. Over time, the total subsidy could reach Rs100 billion. The government has also set aside 25% of these subsidies for women to promote their participation in eco-friendly transport. The money for these subsidies will come from taxes on older vehicles that pollute more and use more fuel.
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The policy also focuses on building Pakistan’s own EV industry. The government wants to locally produce 90% of the parts used in electric bikes and rickshaws. This will help create jobs, lower production costs, and encourage innovation in local manufacturing. To support the growing number of EVs, the government plans to set up 40 charging stations across the country in the first phase.
A few days earlier, Prime Minister Shehbaz Sharif led a high-level meeting in Lahore where he urged quick action to promote electric vehicles, including bikes, cars, buses, and scooters. He said local production of two- and three-wheeler EVs must be increased, and industries should be given everything they need to make this happen. He also asked for the draft EV policy to be finalised and shared with the federal cabinet as soon as possible. During the meeting, the prime minister highlighted the importance of building EV infrastructure like charging stations and battery-swapping points, and he called for quick consultations with all stakeholders to speed up the process.
