Islamabad: Pakistan is witnessing a significant shift toward sustainable transport, with the total number of electric vehicles (EVs) in the country now exceeding 76,000. The government has set an ambitious goal for EVs to constitute 30% of all new vehicle sales by 2030.
During a briefing to the National Assembly’s Standing Committee on Finance, the Secretary for Industries and Production revealed the policy is expected to save Pakistan $1 billion annually on oil imports. Furthermore, it is projected to reduce health-related costs by $450 million due to lower pollution levels.
The policy has secured international backing, including agreement from the IMF, $1.4 billion in financing, and a $1.8 million grant from the IFC.
To incentivize adoption, the government has drastically cut the electricity tariff for charging stations from 92 PKR to 39.07 PKR per unit. Additionally, a subsidy of 80,000 PKR will be provided for electric motorcycles priced at 250,000 PKR.
The Secretary noted that electric motorcycles and rickshaws are rapidly gaining traction, with applications for the 100,000-unit target for this year already exceeding seven times the available slots.
To boost the local industry, the government has imposed strict localization requirements. Battery production is mandated to begin locally within the next year, and companies will lose access to subsidies if they fail to achieve 100% local manufacturing of parts within two years.
