Pakistan to slash EV prices with Rs9 billion subsidy plan

ISLAMABAD: Pakistan’s new EV policy is all the talk as the government has announced ambitious plans worth Rs. 9 billion for e-bikes and electric three-wheelers.

The Sharif-led government announced the National Electric Vehicle (NEV) Policy aimed at accelerating the country’s transition to sustainable transportation. Rs. 9 billion has been allocated to subsidize the purchase of over Rs. 116,000 electric bikes and 3,100 electric rickshaws, with the entire process being managed entirely through a digital platform to ensure transparency and efficiency.

The policy includes a total subsidy budget of over Rs. 100 billion, with an emphasis on inclusion, with a quarter of these subsidies earmarked specifically for women to encourage their participation in the green mobility revolution.

The government further implemented the NEV Adoption Levy on conventional petrol and diesel vehicles. The levy is levied based on engine capacity: 1% for vehicles below 1300cc, 2% for engines between 1300cc and 1800cc, and 3% for vehicles with engines above 1800cc. The move is expected to increase the prices of vehicles with conventional internal combustion engines, which will attract consumers to electric alternatives.

In addition to fiscal incentives, the policy promotes domestic manufacturing of electric vehicles. Safeguard tariffs will be applied to parts of two- and three-wheeled EVs with a target of 90% localization, aimed at fostering a strong local industry.

Infrastructure development is a key focus. The initial rollout includes the installation of 40 EV charging stations along major motorways, complemented by plans to set up battery swap facilities. Updated building codes will require EV charging capabilities in new construction, and the government is encouraging private sector investment to reach a target of 10,000 charging stations nationwide by 2030.