Pakistan’s Electric Vehicle Support NEW Policies, Subsidies & Tax Perks

Pakistan is charging ahead with electric mobility through its National Electric Vehicle (NEV) Policy 2025–30, introducing bold incentives to accelerate EV adoption across the country.

For fiscal year 2025–26, the government has allocated a Rs 9 billion subsidy, covering 116,053 electric motorcycles, 3,171 electric rickshaws, and reserving 25% of subsidies for women buyers. Electric car buyers will also receive Rs 15,000 per kWh of battery capacity, reducing upfront costs significantly.

Tax incentives include just 1% sales tax on locally assembled EVs, zero customs duties on EV parts, and no registration fees or excise duty, making EVs far more affordable for consumers.

To support growing demand, the policy promises 40 charging stations along major motorways, battery swapping stations for two- and three-wheelers, and mandatory EV charging points in new buildings. A 45% reduction in electricity tariffs for EV charging further lowers running costs.

Pakistan is also boosting local manufacturing, with 90% of e-bike parts already made locally and international companies like BYD setting up assembly plants, targeting production by mid-2026.

The NEV Policy aims for 30% EV sales by 2030 and 90% adoption by 2040, potentially saving Rs 800 billion in fuel imports. While challenges remain—like policy clarity on used EV imports—the roadmap signals a strong commitment to a cleaner, more sustainable future.