ISLAMABAD – Pakistan’s new EV policy has everyone talking as government announced ambitious plans with Rs. 9 Billion subsidy for E-Bikes and electric three wheelers.
Sharif led government announced 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 116,000 electric bikes and 3,100 electric rickshaws, with the entire process managed through a fully digital platform to ensure transparency and efficiency.
The policy includes a total subsidy budget exceeding Rs. 100 billion, with a strong emphasis on inclusivity, reserving on fourth of these subsidies specifically for women to encourage their participation in the green mobility revolution.
The government further imposed NEV Adoption Levy on conventional petrol and diesel vehicles. This levy is tiered based on engine capacity: 1% for vehicles under 1300cc, 2% for engines between 1300cc and 1800cc, and 3% for vehicles with engines over 1800cc. The move is expected to raise prices for traditional internal combustion engine vehicles, nudging consumers towards electric alternatives.
Beyond financial incentives, the policy fosters domestic manufacturing of electric vehicles. Protective tariffs will be implemented alongside a target of 90% localization in parts for two- and three-wheeled EVs, aiming to develop a robust 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 establish battery swapping facilities. Updated building codes will require EV charging capabilities in new constructions, and the government is encouraging private sector investment to reach a nationwide goal of 10,000 charging stations by 2030.
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