Pakistan’s NEV Policy 2025–30 Targets 2.2 Million Electric Vehicles by 2030

Pakistan has unveiled its comprehensive New Energy Vehicle (NEV) Policy for 2025–30, targeting a transformative shift in the country’s transport sector. The policy aims to make 30% of all new vehicle sales electric by 2030. It also envisions saving $1 billion in oil imports, improving urban air quality, and boosting job creation and local industry. The initiative falls under broader goals of climate resilience, energy security, and sustainable economic growth.

Strategic Targets

• 30% NEVS by 2030
• 2.2 million NEVs targeted by 2030.
• USD 1 billion in oil import savings (2 billion liters).
• PM2.5 reduction in major cities, with PKR 105 billion in health and productivity gains.
• Net fiscal impact: PKR 731 billion by 2030.

Key Interventions

1. Supply-Side Reforms

• 61 industrial licenses issued for 2-/3-wheel NEVS.
• 90% localization target for 2- and 3-wheelers in 2 years.
• NEV Skills Program to generate 15,000+ jobs.
• The NEV Center was established for R&D, standards, and certification.
• Critical Minerals Strategy for battery supply chain development.

2. Charging Infrastructure

• 3,000 charging stations planned by 2030.
• 40 fast chargers in the first 6 months.
• 10% mandate for oil stations to install EV chargers.
• Fixed charging station tariff at Rs. 39.70/kWh.
• Integration with grid, solar, and smart metering.

3. Whole-of-Government Ecosystem

• Centralized governance via a minister-chaired steering committee with provincial inclusion.
• The Engineering Development Board (EDB) serves as the implementing secretariat and regulator.
• Quarterly progress reviews, the National Action Plan, and carbon accounting.
• Development of a real-time charging station locator app [national mapping tool]

International & Fiscal Alignment

• Integrated within the IMF’s Resilience and Sustainability Facility (RSF): US$1.4 billion.
• Supported by IFC (US$1.8M) and ADB (credit lines, blended finance).
• Fiscal instruments are designed for revenue neutrality through the NEV Adoption Levy.

Environmental and Economic Gains

• Circular economy initiatives for battery recycling and e-waste regulation.
• Clean air benefits and enhanced public health.
• Urban model deployment initiated in Islamabad; other provinces encouraged to replicate.

PAVE Scheme Brief

Electric 2- & 3-Wheeler Scheme (FY 2025-26)

• • Target: 116,000 e-bikes & 3,170 e-rickshaws/loaders
  • Phase 1: 40,000 bikes + 1,000 3Ws
  • Phase II: 76,000 bikes + 2,170 3Ws

• Financing:
• Loan: Rs. 200,000 (bikes), Rs. 880,000 (rickshaws)
• Subsidy: Rs. 50,000 (bikes), Rs. 200,000 (rickshaws)
• Equity: 80:20 | 20% first-loss guarantee

• Budget: Rs. 100B over policy period | Funded via NEV Levy on ICE vehicles
• Projected revenue: Rs. 122B over 5 years → revenue-neutral

• Eligibility & Quotas:
• Age: 18-65 (2Ws), 21-65 (3Ws); nationwide
• Quotas: ≥25% women (2Ws), ≤10% commercial, ≤30% fleet (3Ws)
• 1 EV/applicant | Provinces per 2023 census

• Execution:
• Implemented by EDB | OEM pre-qualification
• NADRA-linked digital platform developed by PITB
• e-balloting for oversubscription