Pakistan goes electric: PM launches new policy to save money and the environment.

Prime Minister Shehbaz Sharif has formally launched Pakistan's New Energy Vehicle (NEV) Policy for 2025-2030.1 The policy is a comprehensive framework aimed at transitioning the country's transport sector toward electric vehicles (EVs) to address climate change, improve air quality, and reduce the national fuel import bill.

Key features of the policy include:

• Targets: The policy aims for 30% of all new vehicle sales to be NEVs by 2030, with a long-term goal of achieving a 100% zero-emission road fleet by 2060.3

• Incentives and Subsidies: The government will offer subsidies for two- and three-wheelers, with an initial allocation of Rs 4 9 billion for the fiscal year 2025–26 to facilitate the purchase of electric bikes and rickshaws.5 A portion of this subsidy is reserved for women. The policy also includes tax exemptions, reduced import duties on EV components, and financing options.

• Infrastructure: The plan includes a goal to establish 3,000 charging stations nationwide by 2030, with 40 fast-charging stations to be installed on highways within the next six months. It also mandates that a certain percentage of petrol stations must be converted to EV charging sites.

• Economic Impact: The government projects that the policy will save an estimated $1 billion annually in oil imports and reduce carbon emissions by 4.5 million tons by 2030.6. The shift to EVs is also expected to create new jobs and boost the local manufacturing industry.7

• Implementation: An inter-ministerial steering committee will oversee the policy's implementation, and a portion of the revenue from a new levy on petrol and diesel vehicles will be used to fund the initiative.8 The city of Islamabad will be designated as a model "electric mobility city."9