On a typical winter morning in Lahore, many children may have to walk to school with masks pulled tightly across their faces, not because of a pandemic, but because of the toxic smog that clings to the city like an unwelcome blanket, leading to respiratory diseases and rising healthcare costs for families.
From a wider angle, on any given day in Lahore, Karachi or Peshawar, with streets and alleys teaming with motorbikes and rickshaws, you can see the cost of Pakistan’s fossil fuel addiction in the smog that hangs over the streets and the queues that stretch at petrol pumps when prices spike. Some families spend a larger portion of their household budgets on fuel than ever before, while the nation as a whole incurs billions of dollars in annual expenses for imported fuels. It is a cycle that leaves Pakistan poorer, sicker, and more vulnerable to global shocks.
But a different future is possible, and it is already taking shape. The government’s New Energy Vehicles Policy 2025-2030 (NEVP) is more than just a plan for hybrid and electric transport; it is a roadmap for cleaner air, cheaper energy and new ‘green’ jobs. When implemented with ambition, it can transform Pakistan’s bustling cities from smog-filled to noise- and air-pollution-free vistas.
The policy’s target is bold: by 2030, nearly one in three new vehicles sold in Pakistan should be electric. By 2060, all new sales should be. That shift would save the country over a billion dollars a year in oil imports – money that today disappears into foreign coffers instead of being invested in schools, hospitals, and jobs at home.
Even more promising could be the plan to solarise charging stations across the country. Pakistan enjoys some of the highest levels of irradiation in the world, with four to six peak sun hours a day in most major cities. Petrol pumps can be turned into clean energy hubs by installing rooftop solar panels and fast chargers, for which domestic private credit expansion by banks can be mobilised. The economics are attractive: an initial investment of about Rs8 million to Rs9 million pays for itself in just three to four years, after which profits flow steadily while costs fall by more than half. It is a model that companies like Shell have already deployed in Singapore, and Pakistan has every reason to scale it up.
The shift to EVs, combined with solar power, also addresses the two existential risks at the heart of Pakistan’s concerns: climate change and population growth. On the climate side, electric mobility means cleaner air, less noise pollution, and lower carbon emissions. It offers a way to reduce the suffocating smog that blankets cities each winter and to slow the pace of global warming that is already unleashing floods, droughts, and heatwaves across the country.
On the population side, Pakistan’s demographics guarantee rising demand for mobility. As cities expand due to urbanisation and incomes rise in urban and peri-urban areas, millions of people will require more motorbikes, cars, buses and rickshaws to move around. Without change, that means ever-higher oil imports and a permanent strain on the balance of payments. With EVs powered by the sun, it means more affordable mobility that strengthens rather than weakens economic stability.
The social impact could be just as profound. Every charging station needs technicians to install and maintain it, every EV needs trained diagnosticians for battery systems and software updates, and every solar-energy system creates demand for vendors, installers, and engineers. In other words, this is a ‘green’ job-creating machine – one that prepares young Pakistanis for the industries of the future, rather than chaining them to the industries of the past. For families, the payoff is cleaner air and lower healthcare costs. For children walking to school, it is a chance to breathe without fear.
Of course, no transition of this scale is without challenges. Electric vehicles and charging infrastructure require significant upfront investment. Consumers are still hesitant, unsure about affordability and charging availability. And utilities must plan for smooth integration with the national grid. Yet these hurdles are not insurmountable. Government subsidies are already lowering the cost of EVs, with targeted incentives for two- and three-wheelers – the vehicles most widely used by Pakistan’s working class. Regulators have set clear tariffs for EV charging, making the business model attractive for private investors.
The NEVP is not just about domestic policy; it dovetails with international priorities. Pakistan has committed under the Paris Agreement to cut emissions, and green mobility is one of the most effective ways to achieve those targets under the Nationally Determined Contributions (NDCs). Concurrently, it supports seven SDGs (SDG3 – Good Health & Well-being; SDG7 – Affordable & Clean Energy; SDG8 – Decent Work & Economic Growth; SDG9 – Industry, Innovation & Infrastructure; SDG11 – Sustainable Cities & Communities; SDG12 – Responsible Consumption & Production; and SDG13 – Climate Action).
It also aligns with the IMF’s Resilience and Sustainability Facility (RSF), which specifically calls for decarbonising transport and promoting electric mobility. In other words, supporting this policy is not just good economics and good health but also good diplomacy, opening the door for concessional financing and partnerships with development institutions.
The stakes could not be higher. If Pakistan continues on its current path, it will remain vulnerable to volatile oil prices and rising fuel imports, while its cities become increasingly unlivable and its climate risks become more severe. But if it embraces the shift to clean, solar-powered electric mobility, it can set itself on a course towards energy security, healthier communities and economic growth rooted in sustainability.
The smog over our cities is not inevitable. It is the exhaust of yesterday’s choices. The NEVP offers Pakistan the chance to choose differently. It is a choice that makes sense for the environment, for the economy and for every Pakistani citizen who dreams of breathing easier in a cleaner, greener Pakistan.
The writer is a seasoned banker with 30 years of international expertise in global markets and development finance. He can be reached at: 1adnanpashagmail.com