Pakistan launches EV policy to cut vehicle imports

Pakistan’s first national electric vehicle (EV) policy focuses on vehicles that run on electricity instead of petrol or diesel. This includes electric cars, motorcycles, cycles, and rickshaws.

Through this policy, the federal government aims to reduce transport-related imports by up to $9 billion. Lawmakers were given an update on the progress of the EV policy this week.

The briefing took place during a meeting of the Senate Standing Committee on Industries and Production at Parliament House on Monday. The meeting was chaired by Senator Khalida Ateeb.

Officials said that imported electric cars will be taxed, while locally made electric vehicles will get zero or very low duties. Import taxes will also be placed on car parts to encourage local assembly of electric vehicles in Pakistan.

In the third phase of the EV policy, the government has already issued licences to manufacturers. According to the Ministry of Industries, 17 licences have been issued for electric three-wheelers and four-wheelers. In addition, 77 licences have been given for selling electric motorcycles. Four more licences for larger electric vehicles are currently under process.

The government plans that by 2030, 30% of all vehicles in Pakistan will be electric. This means around 2.2 million electric vehicles will be added to the country’s roads.

To encourage people to switch to EVs, the government is offering subsidies of Rs80,000 for electric motorcycles and Rs400,000 for electric rickshaws. This year, subsidies will cover 116,000 electric bikes and 3,170 electric rickshaws. These incentives will be funded through a carbon levy expected to collect Rs120 billion.

Officials also confirmed that 40 locations for EV charging stations have been identified from Peshawar to Karachi. New laws are also being prepared to make charging stations mandatory at petrol pumps.

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