Observing the global auto industry inclined towards sustainable mobility, our government has started making significant strides towards exploring transportation solution adopting green technology. And the newly launched GuGo Box EV, Kia EV9, from different segments and categories, firmly supports this statement.
With an aim to boost electric vehicles (EVs) production in Pakistan, the government has granted license to 57 EV manufacturers including 2 for wheels makers and others for two and three wheelers.
Govt’s Push for EV Production
Back in 2019, the then government brought National Electric Vehicle Policy (NEVP) to the table and the purpose was to design an impressive roadmap for developing EV sector in the country. The NEV policy targets having electric vehicles make up 30% of all passenger vehicle and heavy-duty truck sales by 2030, with an even more aspirational goal of reaching 90% by 2040.
The government’s EV policy also includes targets for two- and three-wheelers, as well as buses. The goal is to have 50% of new sales for these vehicles be electric by 2030, increasing to 90% by 2040.
The policy also sets clear targets for electric two- and three-wheelers, as well as buses. By 2030, half of all new sales in these categories should be electric, with a goal of reaching 90% by 2040.
Development of Charging Infrastructure
To support the growing EV network, authorities are working on setting up charging stations, including fast chargers and battery-swapping facilities, according to Radio Pakistan.
Alongside production efforts, the government is offering incentives to make EVs more appealing to consumers. These include free registration, exemption from annual token fees, and toll tax waivers. Additionally, plans are in place to create special electric vehicle zones in every province, including Islamabad, to accelerate adoption.
However, despite these initiatives, EV production has been slower than expected. A Senate Standing Committee recently pointed out that by the end of 2024, only 60,000 EVs had been produced in Pakistan—far below the target of 600,000.
To boost demand, the government has reduced the electricity tariff for EV charging stations by 45%. The cost per unit has dropped from Rs. 71.10 ($0.14) to Rs. 39.70, with implementation expected by the end of February. Officials also project that investors in the EV sector could see returns exceeding 20%.
