Pakistan’s National Electric Vehicle (NEV) policy will be finalized by October, with a strong emphasis on local manufacturing and encouraging the adoption of electric vehicles (EVs) in the country.
The initiative aims to create a sustainable transport system by transitioning to clean energy technologies in the automotive sector, the Ministry of Industries said on September 24.
The decision came during the first meeting of the Steering Committee on Electric Vehicles, chaired by Minister for Industries and Production, Rana Tanveer Hussain. The committee’s primary focus is to promote energy efficiency and develop the necessary infrastructure to support EVs and NEVs in Pakistan.
During the meeting, it was highlighted that the government is taking concrete steps to reduce electricity tariffs for EV charging stations. In the initial phase, 40 charging stations have been installed on motorways and in major cities to facilitate EV use.
The meeting was attended by key officials, including Minister for Energy Sardar Awais Ahmad Khan Leghari, Secretary of Industries and Production Saif Anjum, and senior representatives from other ministries and departments.
Key facts
- Pakistan aims for 30% electric vehicle (EV) penetration by 2030.
- Currently, there are approximately 45,000 two/three-wheel EVs and 2,600 four-wheel EVs in Pakistan
- Pakistan has set a target of reaching 371,577 EVs by the end of 2024.
- The government established a Steering Committee to promote local EV manufacturing, charging infrastructure, and reduce fuel import costs.
- Since 2022, 49 EV manufacturing licenses have been issued, with a production capacity of 4 million two/three-wheelers annually.
- Pakistan’s EV policy, introduced in 2019, faced slow progress. A revised National Electric Vehicle Policy is expected within a month.
EV manufacturing in Pakistan
Significant progress has been made in EV manufacturing in Pakistan since 2022. To date, 49 licenses have been issued for two- and three-wheeler EV manufacturing, with an annual production capacity of four million vehicles. Of these, 25 manufacturers have already started production. Additionally, the first license for four-wheeler EV manufacturing, with a capacity of 6,000 vehicles per year, was issued in September. Production is expected to begin by the end of 2024.
Currently, 45,000 two- and three-wheeler EVs and 2,600 four-wheelers operate in Pakistan, which accounts for a mere 0.16% and 0.06% of the total vehicles in the country, respectively. Pakistan is aiming for a 30% electric vehicle (EV) penetration by 2030.
In June 2024, Dewan Motors, in collaboration with Eco-Green Motors Limited (EGML), unveiled its first small electric vehicle (EV), the Honri Ve, marking a significant step in Pakistan’s automotive industry.
Federal govt to replace conventional vehicles with EVs
The steering committee is tasked with replacing conventional vehicles with EVs in federal government institutions as part of its long-term strategy. In its next meeting, the committee will also discuss plans to establish a financial structure to incentivize EV and NEV adoption through grants and budget allocations.
The committee’s terms of reference include collaborating with oil marketing companies (OMCs) and the National Highway Authority (NHA) to develop a national plan for charging station deployment. This includes installing fast-charging stations at strategic locations along highways and in urban centers to support the widespread use of EVs for both inter-city and intra-city transport.
Additionally, the committee is responsible for proposing appropriate tariff structures for EV charging stations and developing a duty framework to further encourage local EV production.
The policy is also aligned with Pakistan’s climate change targets. The committee will focus on reducing carbon emissions by promoting clean energy solutions in the transport sector.
Public awareness campaigns will be launched to educate the public about the environmental benefits and cost savings associated with EV adoption.
