Rs. 100 Billion Subsidy: National Electric Vehicle (NEV) Policy 2025–30 Announced

The Government of Pakistan is ready to accelerate its transition to clean mobility with the launch of its National Electric Vehicle (NEV) Policy 2025–30. This comprehensive policy, to be unveiled by SAPM Haroon Akhtar Khan, signals a strong commitment to addressing climate goals, enhancing energy efficiency, and fostering local industrial growth.

A cornerstone of the NEV Policy is a substantial subsidy program. For the fiscal year 2025–26, an allocation of Rs. 9 billion is set to support the adoption of over 116,000 e-bikes and 3,100 e-rickshaws. This program will be managed through a fully digital platform to ensure transparency and efficiency.

The government plans to disburse over Rs. 100 billion in total subsidies, with a notable 25% reserved for women, promoting inclusivity in the transition. To finance these ambitious subsidies and encourage the shift away from conventional vehicles, a NEV Adoption Levy will be imposed on Internal Combustion Engine (ICE) vehicles.

This levy, varying by engine capacity (1% for under 1300cc, 2% for 1300-1800cc, and 3% for over 1800cc), is expected to lead to a noticeable increase in prices for petrol-powered cars and commercial vehicles. Beyond financial incentives, the policy actively promotes local EV manufacturing.

This includes tariff protections and a target of 90% localization in 2-3 wheelers, aiming to develop a robust domestic EV industry. Infrastructure development is also a key component. The initial rollout will see 40 charging stations on major motorways, complemented by efforts to establish battery swapping facilities.

The policy also includes updates to building codes to accommodate EV charging and encourages private investment in the charging infrastructure. The government aims for 10,000 EV charging stations nationwide by 2030.

This comprehensive NEV Policy 2025–30 aims to position Pakistan for a sustainable, affordable, and inclusive electric vehicle future, reducing reliance on imported fuel, curbing pollution, and creating new economic opportunities.