The government has introduced the New Energy Vehicles Policy 2025-30, a plan to encourage electric vehicle use nationwide. It offers subsidies for electric two-wheelers and three-wheelers and aims to expand charging infrastructure by 2030.
Details of the measures were presented during question hour in the National Assembly. Under the proposed policy, electric two-wheelers would receive a subsidy of Rs80,000, while electric three-wheelers would be eligible for Rs400,000.
Charging network targets set for 2030
The government has set a target of establishing around 3,000 public charging stations across the country by 2030. It also plans 40 fast-charging stations at selected sections of motorways and the N-5 National Highway. Charging points at existing petrol pumps are also to be encouraged.
Local manufacturing and battery recycling plans
The policy focuses on producing electric vehicles and their components at home, alongside technology transfer. Officials plan to raise domestic output of electric motors, battery packs and chargers to reduce reliance on imports. Financial assistance and easier financing are intended to make vehicles more affordable, while a system for recycling used batteries is being developed.
Auto policy, IMF tax request and excise duty
Earlier, Prime Minister Shehbaz Sharif approved a five-year auto policy to expand local production and exports. According to the policy document, vehicle exports are targeted at $6 billion, and import duties on vehicles will be gradually reduced. The government has rejected an International Monetary Fund proposal to raise sales tax on EVs to 18 per cent. Instead, the policy proposes a 10 per cent federal excise duty on electric vehicles valued above $75,000.
