Policy Perks Fail to Spark EV Sales in Pakistan
The National Electric Vehicle Policy in Pakistan sets a goal of 30 percent of new car sales by 2030 to be EVs or plug-in hybrids.
The plan includes 3,000 public charging stations nationwide by the same year.
Current subsidies stand at Rs65,000 for two-wheelers and Rs400,000 for three-wheelers, with potential expansion to four-wheelers under review.
Meanwhile, the Tariff Policy Board has allowed import of used cars up to five years old with a 40 percent duty, a move critics argue favours petrol and diesel vehicles rather than EV adoption.
The Auto Industry Development and Export Policy (AIDEP 2021–26) also offers tax exemptions for EV assemblers, including 1% customs duty on parts and no sales tax for locally manufactured EVs up to 50 kWh battery capacity.
Despite these measures, EV penetration has been slow.
Pakistan imported over 2,500 EV units in FY2024, mainly SUVs and luxury cars, while two- and three-wheeler EVs—supported by subsidies—recorded around 12,000 registrations.
Experts believe the two-wheeler segment offers the fastest growth potential, given that motorcycles make up 62% of the vehicle population in Pakistan.
Power availability is another challenge. With Pakistan facing 4,000–6,000 MW daily shortfalls, EV charging expansion risks straining the national grid unless renewable energy projects are scaled up.
The government has linked EV growth with its 30 percent renewable energy target by 2030, but execution remains slow.
Pakistan NEV Policy Targets
| Policy Area | 2030 Target / Current |
|---|---|
| EV share of new car sales | 30% target |
| Public charging stations | 3,000 target / <1,000 |
| Subsidy (2-wheelers) | Rs65,000 |
| Subsidy (3-wheelers) | Rs400,000 |
| Import duty (used vehicles) | 40% (≤5 years old) |
| EV imports FY2024 | 2,500 units |
| Two/three-wheeler EVs 2024 | ~12,000 units |
