Govt launches National Electric Vehicle Policy
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Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan on Thursday officially launched the National Electric Vehicle (NEV) Policy 2025-30 and called it a historic and transformative step in Pakistan's journey towards industrial, environmental and energy reforms.
Speaking at a press conference, Haroon Akhtar Khan stated that the new EV policy was aligned with the prime minister's vision of promoting clean, sustainable and affordable transportation while encouraging the local industry and protecting environment. Transport sector is a major contributor to carbon emissions and "reform in this area is imperative".
The PM aide said that one of the major targets under the policy was to ensure that 30% of all new vehicles sold in Pakistan by 2030 were electric. This transition is projected to save 2.07 billion litres of fuel annually, amounting to nearly $1 billion in foreign exchange savings. Additionally, the policy is expected to reduce carbon emissions by 4.5 million tons and cut health-related costs by $405 million per year.
He announced that an initial subsidy of Rs9 billion had been allocated for fiscal year 2025-26, under which 116,053 electric bikes and 3,171 electric rickshaws would be facilitated. Some 25% of this subsidy is reserved for women to provide them with safe, affordable and eco-friendly mobility.
He said that a fully digital platform had been introduced to ensure transparent online application submission, verification and disbursement of subsidies. Furthermore, the policy outlines the installation of 40 new EV charging stations on motorways, with an average distance of 105 kilometres.
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Business Recorder
11 hours ago
- Business Recorder
National Electric Vehicle Policy 2025–30 launched
ISLAMABAD: The government has officially launched the National Electric Vehicle (NEV) Policy 2025–30, aiming to reduce carbon emissions, cut fuel imports, and promote local manufacturing of electric vehicles (EVs). Speaking at the launch, Prime Minister's Special Assistant on Industries Haroon Akhtar Khan said the policy will not only strengthen Pakistan's economy but also protect the country from the harsh effects of climate change. He called the policy a historic step toward clean, affordable, and sustainable transportation. He said that over the next five years, the government will provide a total Rs100 billion subsidy to the electric vehicles. One of the major goals of the policy is to ensure that 30 percent of new vehicles by 2030 are electric. This shift is expected to save 2.07 billion litres of fuel annually, which translates to roughly $1 billion in foreign exchange. Additionally, it could reduce carbon emissions by 4.5 million tons and cut health-related expenses by $405 million each year. To promote adoption, the government has allocated Rs9 billion in subsidies for the fiscal year 2025–26. This funding will help deliver over 116,000 electric bikes and more than 3,000 electric rickshaws. Notably, 25 per cent of the subsidy is reserved for women to support affordable and eco-friendly mobility options for them. To further localise EV production, the government has offered tax breaks on EV parts and extended incentives under the AIDEP tariff facility until 2026. Haroon Akhtar Khan emphasised that this policy could save Pakistan up to Rs800 billion over the next five years and urged all stakeholders to join hands in making this clean transportation vision a reality. Khan stated that the new EV policy is aligned with the prime minister's vision of promoting clean, sustainable, and affordable transportation while encouraging local industry and protecting the environment. He emphasised that the transport sector is a major contributor to carbon emissions in Pakistan, and reform in this area is imperative. He said a fully digital platform has also been introduced to ensure transparent online application, verification, and disbursement of subsidies. Furthermore, the policy outlines the installation of 40 new EV charging stations on motorways, with an average distance of 105 kilometres between them. The policy also includes the introduction of battery swapping systems, vehicle-to-grid (V2G) schemes, and mandatory integration of EV charging points in new building codes to facilitate wider adoption in urban areas. To encourage local manufacturing, incentives are being provided to domestic producers. Currently, over 90 percent of parts for two- and three-wheelers are already manufactured locally. The government will also introduce special support packages for small and medium enterprises (SMEs) to further boost localisation. The AIDEP tariff facility will continue until 2026 and be phased out gradually by 2030. The special assistant noted that the policy was developed through consultations with over 60 experts, institutions, and industry stakeholders, guided by a steering committee under the Ministry of Industries and Production since September 2024. The steering committee held monthly and quarterly review meetings, while the Auditor General of Pakistan will conduct a performance audit every six months. He stressed that the NEV Policy 2025–30 is not only an environmental revolution but also a foundation for industrial growth, local employment, energy efficiency, and technological self-reliance in Pakistan. He expressed hope that federal and provincial governments, the private sector, and citizens will work together to realise this vision of a clean, modern, and sustainable transport system. SAPM stated that the policy is a decisive move toward clean energy, sustainable transportation, and industrial development. It presents a comprehensive and results-driven strategy that aims to lead Pakistan toward a cleaner and more resilient future. He also highlighted that locally produced goods are 30–40 percent cheaper than imported alternatives. In the two-wheeler segment alone, more than 90 percent of parts are now produced locally. Given Pakistan's vulnerability to climate change, the EV policy will significantly contribute to achieving global carbon reduction targets. The policy is expected to yield savings of approximately Rs800 billion over the next five years through reduced fuel imports, the use of cheap electricity and revenue from carbon credits. Charging vehicles with electricity will also reduce capacity payments from Rs174 billion to Rs105 billion, and carbon credits could generate around Rs15 billion in revenue. The country's total energy demand for EVs over the next five years is projected at 126 terawatt-hours, which can be met using the existing surplus in the national grid. An electric rickshaw or bike user is expected to recover their initial investment within one year and 10 months due to the low cost of charging compared to petrol. For instance, if the additional cost of an electric bike is Rs150,000, this can be recouped within less than two years through fuel savings. He concluded by saying that the government has also provided exemptions on customs duties and sales tax on EV parts to support the local industry. 'This policy should be embraced wholeheartedly by Pakistan, as it is a game-changer for our economy, environment, and industrial landscape,' Akhtar affirmed. Copyright Business Recorder, 2025
Express Tribune
13 hours ago
- Express Tribune
Govt launches National Electric Vehicle Policy
Listen to article Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan on Thursday officially launched the National Electric Vehicle (NEV) Policy 2025-30 and called it a historic and transformative step in Pakistan's journey towards industrial, environmental and energy reforms. Speaking at a press conference, Haroon Akhtar Khan stated that the new EV policy was aligned with the prime minister's vision of promoting clean, sustainable and affordable transportation while encouraging the local industry and protecting environment. Transport sector is a major contributor to carbon emissions and "reform in this area is imperative". The PM aide said that one of the major targets under the policy was to ensure that 30% of all new vehicles sold in Pakistan by 2030 were electric. This transition is projected to save 2.07 billion litres of fuel annually, amounting to nearly $1 billion in foreign exchange savings. Additionally, the policy is expected to reduce carbon emissions by 4.5 million tons and cut health-related costs by $405 million per year. He announced that an initial subsidy of Rs9 billion had been allocated for fiscal year 2025-26, under which 116,053 electric bikes and 3,171 electric rickshaws would be facilitated. Some 25% of this subsidy is reserved for women to provide them with safe, affordable and eco-friendly mobility. He said that a fully digital platform had been introduced to ensure transparent online application submission, verification and disbursement of subsidies. Furthermore, the policy outlines the installation of 40 new EV charging stations on motorways, with an average distance of 105 kilometres.
Business Recorder
18 hours ago
- Business Recorder
Pakistan launches National Electric Vehicle Policy 2025-30
Pakistan government on Thursday officially launched the National Electric Vehicle (NEV) Policy 2025-30. Speaking at the launch, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan called the policy a 'historic and transformative step' in Pakistan's journey towards industrial, environmental, and energy reforms, according to a statement from the Ministry of Industries and Production. Haroon Akhtar Khan stated that the new EV policy was aligned with the prime minister's vision of promoting clean, sustainable, and affordable transportation while encouraging local industry and protecting the environment. He emphasised that the transport sector was a major contributor to carbon emissions in Pakistan, and reforms in that area were imperative. National Electric Vehicle policy expected in one month Akhtar said one of the major targets under the policy was to ensure that 30% of all new vehicles sold in Pakistan by 2030 would be electric. The transition is projected to save 2.07 billion litres of fuel annually, amounting to nearly $1 billion in foreign exchange savings. Additionally, the policy is expected to reduce carbon emissions by 4.5 million tons and cut healthcare-related costs by $405 million per year. Akhtar announced that an initial subsidy of Rs9 billion was allocated for the fiscal year 2025-26, under which 116,053 electric bikes and 3,171 electric rickshaws would be facilitated. 'Importantly, 25% of the subsidy is reserved for women to provide them with safe, affordable, and eco-friendly mobility.' He said a fully digital platform was introduced to ensure transparent online application, verification, and disbursement of subsidies. Furthermore, the policy outlines the installation of 40 new EV charging stations on motorways, with an average distance of 105 kilometres between them. Electric Vehicle policy to be announced by end of November: Tanveer The policy also includes the introduction of battery swapping systems, vehicle-to-grid (V2G) schemes, and mandatory integration of EV charging points in new building codes to facilitate wider adoption in urban areas. To encourage local manufacturing, incentives are being provided to domestic producers. Currently, over 90% of parts for two- and three-wheelers are already manufactured locally, according to the ministry. As per the details, the government will also introduce special support packages for small and medium enterprises (SMEs) to further boost localisation. The Automotive Industry Development and Export Plan (AIDEP) tariff facility would continue until 2026 and be phased out gradually by 2030, the official announced. The Special Assistant noted that the NEV policy was developed through consultations with over 60 experts, institutions, and industry stakeholders, guided by a steering committee under the Ministry of Industries and Production since September 2024. The steering committee would hold monthly and quarterly review meetings, while the Auditor General of Pakistan would conduct a performance audit every six months, Akhtar said. He stressed that the NEV policy was not only an environmental revolution but also a foundation for industrial growth, local employment, energy efficiency, and technological self-reliance in Pakistan. He expressed hope that federal and provincial governments, the private sector, and citizens would work together to realise 'this vision of a clean, modern, and sustainable transport system'. Akhtar stated that the policy was a decisive move toward clean energy, sustainable transportation, and industrial development. ' 'It presents a comprehensive and results-driven strategy that aims to lead Pakistan toward a cleaner and more resilient future.' He also highlighted that locally produced goods were 30-40% cheaper than imported alternatives. In the two-wheeler segment alone, more than 90% of parts are now produced locally, according to Akhtar. 'Given Pakistan's vulnerability to climate change, the EV policy will significantly contribute to achieving global carbon reduction targets.' The policy is expected to yield savings of approximately Rs800 billion over the next 24-25 years through reduced fuel imports, the use of cheap electricity, and revenue from carbon credits. 'Charging vehicles with electricity will also reduce capacity payments from Rs174 billion to Rs105 billion, and carbon credits could generate around Rs15 billion in revenue.' The country's total energy demand for EVs over the next five years is projected at 126 terawatt-hours, which could be met using the existing surplus in the national grid, he said. An electric rickshaw or bike user is expected to recover their initial investment within 1 year and 10 months due to the low cost of charging compared to petrol. For instance, if the additional cost of an electric bike is Rs150,000, 'this can be recouped within less than two years through fuel savings'. Akhtar concluded by saying that the government had also provided exemptions on customs duties and sales tax on EV parts to support the local industry. 'This policy should be embraced wholeheartedly by Pakistan, as it is a game-changer for our economy, environment, and industrial landscape.'
