HomeNewsNational NewsPakistan Eyes $1 Billion Fuel Savings with New Electric Vehicle Policy

Pakistan Eyes $1 Billion Fuel Savings with New Electric Vehicle Policy

ISLAMABAD: 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, calling it a historic and transformative step in Pakistan’s journey toward 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 the environment. He stressed the need for urgent change in the transport sector, which he noted is a major contributor to carbon emissions. “Reform in this area is imperative,” he said.

The special assistant highlighted that one of the core objectives of the policy is to ensure that 30% of all new vehicles sold in Pakistan by 2030 are electric. This ambitious transition, he explained, is expected to bring significant economic and environmental benefits. The move could save up to 2.07 billion litres of fuel annually, resulting in nearly \$1 billion in foreign exchange savings. Additionally, the shift to electric vehicles is projected to reduce carbon emissions by 4.5 million tons and bring down health-related costs by an estimated \$405 million each year, marking a substantial step toward a greener future.

To support the policy’s initial implementation, the government has allocated a subsidy of Rs9 billion for the fiscal year 2025–26. Under this program, a total of 116,053 electric bikes and 3,171 electric rickshaws will be facilitated. In a move to promote inclusive mobility, 25% of the allocated subsidy is reserved for women, with the goal of providing them access to safe, affordable, and environmentally friendly transportation options.

Haroon Akhtar Khan also announced the introduction of a fully digital platform designed to manage the entire subsidy process. This platform will handle online application submissions, verifications, and disbursements, ensuring transparency and efficiency in the distribution of public funds.

In addition to vehicle subsidies, the policy also focuses on infrastructure development. It outlines plans to install 40 new EV charging stations along the country’s motorways, with each station spaced at an average distance of 105 kilometres. This network is aimed at supporting the adoption of electric vehicles by addressing one of the most common challenges — access to convenient and reliable charging facilities.

The NEV Policy 2025–30 represents a comprehensive and forward-looking approach to reshaping Pakistan’s transport landscape. By prioritizing sustainability, economic savings, and gender inclusion, the government aims to position Pakistan as a regional leader in clean mobility solutions.

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