Government plans 30% share of new vehicle sales through electric and alternative-energy transport by the end of the decade
ISLAMABAD: Pakistan has unveiled an ambitious roadmap to transform its transport sector, targeting 2.2 million New Energy Vehicles (NEVs) on the roads by 2030 under the New Energy Vehicle (NEV) Policy 2025-2030, according to the Economic Survey of Pakistan 2025-26.
The policy, formulated by the Engineering Development Board (EDB) in collaboration with the Ministry of Industries and Production (MoIP), aims to ensure that 30 per cent of all new vehicle sales by 2030 comprise NEVs, including electric and other alternative-energy vehicles.
The initiative forms part of the government’s broader strategy to reduce dependence on imported petroleum products, lower greenhouse gas emissions, improve urban air quality, and promote sustainable economic growth.
Under the policy framework, the targeted 2.2 million vehicles will include electric motorcycles, scooters, rickshaws, passenger cars, light commercial vehicles, buses, and trucks. Authorities believe the transition towards cleaner transportation will significantly reduce fuel consumption while supporting Pakistan’s environmental and climate commitments.
To accelerate adoption, the government has introduced a range of incentives designed to encourage both consumers and investors. These include cost-sharing subsidies under the Pakistan Accelerated Vehicle Electrification (PAVE) programme, viability gap funding for manufacturers and investors, and support for the development of charging infrastructure across the country.
Officials say the policy seeks to establish a complete electric mobility ecosystem by promoting local manufacturing, encouraging technological innovation, and attracting domestic and foreign investment into the automotive and renewable energy sectors.
The Economic Survey highlighted that the shift towards new energy vehicles could generate substantial economic benefits by creating employment opportunities, fostering industrial development, and reducing the country’s fuel import bill, which remains a major burden on the external account.
Industry experts have welcomed the policy as a landmark initiative that aligns Pakistan with global trends in clean transportation. However, they caution that achieving the ambitious targets will require sustained policy support, significant investment in charging networks, expansion of electricity distribution infrastructure, and greater consumer awareness regarding electric mobility.
Analysts also emphasise the importance of developing a robust local supply chain for batteries, components, and vehicle assembly to ensure long-term sustainability and competitiveness of the sector.
If successfully implemented, the NEV Policy 2025-2030 could represent one of the most significant transformations in Pakistan’s automotive industry, accelerating the transition to cleaner transport while supporting economic growth, energy security, and environmental sustainability.
The policy reflects the government’s commitment to modernising the transport sector and positioning Pakistan to benefit from the global shift towards low-carbon and energy-efficient mobility solutions.
