Pakistan is set to save around $1 billion every year in oil imports under its new Electric Vehicle (EV) Policy, a major step toward economic and environmental sustainability. The announcement came during a briefing to the National Assembly’s Standing Committee on Finance, chaired by Syed Naveed Qamar.
Introduced after the federal budget’s approval, the EV Policy aims to transform the transport sector and reduce dependence on costly fuel imports. Naveed Qamar stated that the policy needs some clarifications but holds great potential for growth and investment.
According to the Secretary of Industries and Production, the International Monetary Fund (IMF) has endorsed the policy, offering $1.4 billion in financing, while the International Finance Corporation (IFC) has granted $1.8 million for EV infrastructure development. Over 76,000 electric vehicles are already operational in Pakistan, and several global automakers are planning local production facilities.
The government will provide Rs. 80,000 subsidies on electric motorcycles costing Rs. 250,000, and has slashed electricity rates for charging stations from Rs. 92 to Rs. 39.7 per unit. By 2030, Pakistan plans to set up 3,000 EV charging stations and ensure that 30% of all new vehicle sales are electric.
Officials added that Rs. 100 billion in subsidies will be offered over the next five years to encourage EV adoption.
“The shift to electric mobility will not only cut oil imports but also improve public health, potentially saving up to $450 million in healthcare costs,” said the Secretary of Industries.