Pakistan aims for 90% of all vehicle sales to be electric in just 16 years

Electric vehicle (EV) adoption in Pakistan is set to grow significantly over the upcoming decades and the government of Pakistan is aiming at 30% adoption by the year 2030, 90 percent by 2040, and a whole switch to 100 percent EVs by 2050. The Energy Vehicle Policy 2025-30 also intends a fully zero-emission vehicle fleet by 2060, showcasing a long-term dedication to sustainable transportation and environmental conservation. 

To drive faster EV adoption and establish a robust manufacturing ecosystem, the government plans to allocate 20 percent of special technology zones to the EV sector. This initiative is designed to attract substantial investment in the industry. Investors contributing Rs. 3 billion within the policy’s first five years will enjoy multiple incentives, including concessional land leases for up to 50 years, fostering a favorable environment for local and international stakeholders to establish EV production facilities in Pakistan. 

Read more: 40 charging stations for electric vehicles will be established on motorways

The policy also introduces a tiered structure for customs duties to encourage local manufacturing while allowing for the initial import of necessary components. Specific imported EV parts will be subject to a minimal customs duty of 1 percent. In contrast, non-local parts will face a duty of 15 percent, escalating to 45 percent for locally available parts to incentivize domestic production. Electric scooters and bicycles will see an initial customs duty of 5 percent in the first year, increasing to 10 percent in the second year and 15 percent in the third year. For non-local EV parts, the duties will rise progressively, mirroring this trend.   

Local EV parts are expected to have duties of 15 percent in the first quarter of year and 25 % in the second year, pushing manufacturers toward local sourcing. 

furthermore, the government intends to work directly with the Securities and Exchange Commission of Pakistan (SECP) to develop comprehensive manufacturing strategies. This collaboration will focus on refining regulatory frameworks and creating an enabling environment for EV production. 

These measures signal Pakistan’s serious intent to foster a sustainable transportation future, reduce carbon emissions, and create economic opportunities through a thriving EV industry. The policy’s phased approach balances fostering industrial growth with environmental responsibility, ensuring a sustainable and competitive EV ecosystem.