Prime Minister Shehbaz Sharif is firm about transitioning to Electric Vehicles (EVs), targeting a 30% shift in Pakistan’s transport sector over the next five years. The move is projected to save the national exchequer up to $4.5 billion in fuel import costs, providing a critical cushion for the country’s foreign exchange reserves.
During a high-level review in Islamabad, the PM emphasized that reducing the fuel import bill is now a matter of national economic security.
Cutting the $15 Billion Oil Bill
Pakistan’s annual oil import bill often fluctuates between $10 billion and $20 billion. By transitioning 30% of the fleet to electric, the government aims to reduce USD Outflow and save around $4.5 billion by 2031.
The government also aims to become more independent in the energy sector by shifting transport demand away from imported petrol toward locally produced (and often surplus) electricity.
Read More: No More Petrol Cars? Punjab Government Is Going 100% Green – PakWheels Blog
Manufacturing and Infrastructure Progress
The Ministry of Industries and Production reported significant private sector interest following the New Energy Vehicle (NEV) Policy 2025-30:
- 72 Licenses Issued
For the local manufacturing of electric motorcycles and rickshaws.
- 4 Car Licenses
New players are entering the 4-wheel EV assembly space.
- 123 Charging Stations
Applications have been received to build a nationwide charging network, with 40 points planned along major motorways immediately.
EV Incentives for Citizens and Employees
To bridge the price gap between ICE and EVs, the government is rolling out:
- Electric Bikes on Installments
Specifically targeting Grade 1-16 government employees.
- Subsidies
Direct cash-back or price reductions for low-income buyers of e-bikes and e-rickshaws.
- Tax Breaks
Continued duty exemptions for EV parts to ensure local prices remain competitive.
Pakistan’s EV Journey: 5 Year Outlook
According to the NEV policy, the government aims to achieve certain goals by 2030, which are the following:
| Goal | Target Metric |
| Market Share | 30% of all new vehicle sales to be electric by 2031 |
| Fuel Savings | $4.5 Billion (Estimated 5-year total) |
| Charging Points | 3,000+ stations nationwide |
| Local Industry | 90% localized parts for 2/3 wheelers |
Final Takeaway
The Prime Minister’s office is expected to review a detailed implementation plan within the coming weeks. While the vision is clear, the success of this transition will depend on the stability of the national power grid and the consistency of long-term tax incentives.
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