Pakistan set to release EV policy aiming at 30% EV adoption by 2030

Government is planning to allocate 20 plots in Special Technology Zones for electric vehicle (EV) plants
An undated image of cars at EV station. — Canva
An undated image of cars at EV station. — Canva

The government of Pakistan is gearing up to launch a new Electric Vehicle (EV) Policy for 2025-2030 by the end of November, as announced by Federal Minister for Industries and Production Rana Tanveer Hussain on Wednesday.

The ambitious plan aims to have 30% of vehicles on the road converted to electric by 2030, with a long-term goal of 90% by 2040.

Pakistan’s new EV Policy

The draft of the new EV policy has been developed with consultation from all stakeholders.

“This policy will help reduce pollution and lower the import bill for fuel. We are working to provide more incentives to companies to increase EV production, and next year, four-wheel electric vehicle plants will begin manufacturing in the country,” Hussain stated.

Read more: Govt to support EV charging stations in Pakistan with lower power rates

However, to achieve this target, the government offers attractive incentives for investors, including subsidies for electric motorcycles and scooters, soft loans, and discounted land leases.

Citing sources, The News reported that the government has also lowered the policy interest rate from 22% to 15%, meaning the consumers will be paying only the instalment over a span of two years with a monthly payment of approximately Rs9,000 per month.

The policy also includes a 50-year discounted land lease for investing companies. However, a 1% customs duty will be imposed on certain parts imported for EV manufacturing.

The policy also focuses on establishing 3,000 EV charging stations and providing subsidies for electric two and three-wheelers.

The government has also allocated Rs4 billion under the 2024-25 federal budget to support this initiative, offering subsidies of Rs50,000 for electric motorcycles and Rs200,000 for three-wheelers.

Additionally, the government is planning to allocate 20 plots in Special Technology Zones for electric vehicle plants, to encourage the export of EVs.