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Pakistan faces a major financial challenge in its transition to electric vehicles (EVs), with the World Bank estimating that $566 billion will be needed by 2030 to achieve climate and decarbonization targets. The figure was highlighted during a high-level session hosted by the Overseas Investors Chamber of Commerce and Industry (OICCI), underscoring the central role of EVs in the country’s energy and transportation strategy.
National Targets
Under the New Energy Vehicle Policy (NEVP) 2025-2030, Pakistan aims for 30% of all new vehicle sales to be electric by 2030, with a longer-term target of 90% by 2040. To encourage adoption, the Ministry of Industries and Production has introduced fiscal incentives, including:
- 1% customs duty on EV-specific parts
- Reduced sales tax for locally manufactured EVs
These measures are expected to benefit consumers through 30–40% lower operating costs compared to conventional petrol vehicles, along with reduced national spending on imported fuel.
Local Manufacturing
Pakistan’s EV market is rapidly evolving, with both global and domestic players entering the sector:
- BYD Karachi Plant: In collaboration with Mega Motor Company, Chinese automaker BYD is investing $200 million to produce locally assembled EVs, with production expected to begin by mid-2026.
- New Entrants: Brands like Deepal, Omoda, and GWM’s Ora are challenging established Japanese automakers in the passenger vehicle market.
- 2- Wheeler Adoption: The Engineering Development Board (EDB) has issued over 50 licenses, mainly to electric bike and rickshaw manufacturers, who are leading the adoption in cities and smaller towns.
Bridging the Charging Gap
A significant portion of the $566 billion is planned for a nationwide charging network, a critical component of EV adoption:
- Target: 3,000 charging stations across Pakistan by 2030
- Current Progress: More than 350 public charging points are operational in major cities including Karachi, Lahore, and Islamabad
- Government Support: A 44% reduction in electricity tariffs for EV charging stations has been announced to encourage private investment
Road Ahead
Experts say the scale of investment highlights that Pakistan’s shift to EVs is not optional but essential. Over the next two years, the country is expected to see an influx of affordable, locally assembled EVs and a surge in private infrastructure investment. Analysts note that the transition from petrol to electric vehicles will play a critical role not only in reducing emissions but also in shaping Pakistan’s economic future.
