ISLAMABAD – Pakistan is set to introduce a wide-ranging package of incentives under its upcoming New Energy Vehicle (NEV) policy to promote the adoption of electric and clean-energy vehicles, particularly electric motorcycles and rickshaws.
According to the proposed policy, NEVs registered in Islamabad will be exempt from registration fees and annual token taxes, reducing both upfront and recurring ownership costs for consumers in the federal capital.
The policy also encourages provincial governments, Gilgit-Baltistan and Azad Jammu and Kashmir to introduce similar exemptions in their respective jurisdictions to expand the incentives nationwide.
In a major proposed relief measure, the National Highway Authority (NHA) is expected to exempt NEVs from toll charges on motorways and national highways. The move is aimed at lowering intercity travel costs for electric vehicle owners and encouraging wider adoption of clean mobility solutions.
The government’s primary focus remains on accelerating the use of electric two- and three-wheelers, which are widely used for urban commuting and are expected to play a key role in the country’s transition towards cleaner transport.
Although NEVs currently cost more than conventional vehicles, policymakers believe the proposed incentives, including tax exemptions, registration fee waivers and toll relief, will improve long-term affordability and reduce operating expenses for consumers.
Officials say the expected revenue impact of the concessions would remain limited, as most NEVs are likely to operate within urban centres rather than on long-distance highway routes.
While implementation in Islamabad has been outlined in the draft policy, adoption of similar incentives across the country will depend on whether provincial governments choose to align their policies with the federal framework.
