Government Launches New 5-Year Electric Vehicle Policy with Big Subsidies
ISLAMABAD – The government of Pakistan has introduced a new electric vehicle (EV) policy for the next five years to reduce pollution, lower fuel imports, and support local production of electric vehicles.
To promote EV use, the government has set aside Rs 9 billion in subsidies for the financial year 2025–26. Under this plan, each electric bike or rickshaw will get a Rs 50,000 subsidy, according to officials from the Ministry of Industries and Production.
This move will help bring over 116,000 electric bikes and more than 3,000 electric rickshaws to the roads in the next two years. Also, 25% of the subsidy is reserved for women, so they can have more affordable and eco-friendly travel options.
The main goal of this policy is that 30% of all new vehicles in Pakistan should be electric by 2030.
In comparison, the previous EV policy had limited results. It only managed to bring 50,000 electric bikes or rickshaws, 200 electric buses, 3,000 electric cars, and just 10 trucks — far less than the targets set by the government.
The new policy has set future subsidy amounts as well:
Rs 19 billion in 2027
Rs 24.16 billion in 2028
Rs 26.62 billion in 2029
Rs 22.64 billion in 2030
The Prime Minister is expected to officially launch the policy on August 14.
This new policy will also improve EV infrastructure. The government plans to set up 40 electric charging stations along motorways. New buildings will be required to have EV charging points, and battery swapping systems will be introduced in cities to make charging easier.
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