Pakistan to roll out EV policy targeting 30pc electric cars by 2030

ISLAMABAD: Pakistan is set to roll out a new Electric Vehicles (EV) Policy for 2025-30 by end this month, aiming for 30 percent of vehicles on the road to be electric by 2030, and providing certain attractive incentives for investors, such as subsidies for electric motorcycles and scooters, soft loans and discounted land leases.

Federal Minister for Industries and Production, Rana Tanveer Hussain, said on Wednesday that the government is committed to promoting environmentally friendly vehicles and reducing the import bill. The draft of the new five-year Electric Vehicles (EV) Policy for 2025-30 has been developed with the consultation of all stakeholders, under which investors will be offered attractive incentives.

The minister further revealed that 20 plots in Special Technology Zones will be allocated for electric vehicle plants and export of EVs will also be encouraged.

A document outlining the policy available to “The News’ reveals that “The government has lowered the policy interest rate from 22 per cent to 15 per cent. The scheme will be launched with 3 percent KIBOR which is to be borne by the government. Thereby the consumers will be paying only the installment over a span of two years with monthly payment approximately Rs9,000/month which will be even lesser than the saving from the fuel consumption. Credit Loss guarantee is also parked at Finance Division and is not borne by the ministry or the consumer”

The minister also added that underperforming organizations will undergo right-sizing, with the government saving $15 million this year by avoiding fertilizer imports.

The new 2025-30 policy will offer incentives for investment, including 50-year discounted land leases for investing companies. A one percent customs duty will be imposed on certain parts imported for EV manufacturing. According to the minister, the target is to have 90 percent electric vehicles on the road by 2040, with initial incentives amounting to 3 billion rupees in the first five years.

Tanveer Hussain outlined that the government aims to have 30 percent electric vehicles on the road by 2030 and establishing 3,000 EV charging stations. Use of electric vehicles is rising in many countries to control environmental pollution, and Pakistan is now introducing EVs as well. “This policy will help reduce pollution and lower the import bill for fuel,” he added. “We are working to provide more incentives to companies to increase EV production, and next year, four-wheel electric vehicles plants will begin manufacturing in the country,” said the minister.

A significant feature of the policy is a Rs4 billion allocation under the 2024-25 federal budget to support a demand-incentivization scheme for electric two- and three-wheelers. The scheme offers subsidies of Rs50,000 for electric motorcycles and Rs200,000 for three-wheelers, making EVs more accessible to the general public.