Islamabad: Federal Minister for Industries and Production Rana Tanveer Hussain has unveiled the New Energy Vehicle (NEV) Policy, which aims to transition 30% of Pakistan’s vehicles to electric power by 2030. Speaking at a press conference, the minister emphasized that all stakeholders had been consulted in drafting the policy, which is designed to reduce reliance on expensive fuel imports and promote sustainable transportation.
The policy introduces several incentives, including subsidies of PKR 50,000 for electric motorcycles and PKR 200,000 for electric rickshaws, with a total allocation of PKR 4 billion. These subsidies will be distributed through an auction system, and licenses have already been issued to two companies, with 31 more applications under review. Among the licensed firms is BYD, a leading global EV manufacturer.
The government plans to develop robust EV infrastructure to support the transition, identifying 40 sites along the Peshawar-Karachi Motorway for charging stations. By 2030, 3,000 charging stations are expected to be operational, offering electricity at subsidized rates. Additionally, duties on EV components have been reduced to encourage local manufacturing.
The NEV policy also includes financing measures, such as reducing the policy rate from 22% to 15%, with loans available at 3% KIBOR. Consumers can expect to pay monthly installments of approximately PKR 9,000 over two years, lower than the projected savings on fuel costs.
However, the Pakistan Automotive Manufacturers Association (PAMA) has raised concerns about the policy’s potential impact on the local auto industry. In a letter to the Engineering Development Board, PAMA warned that lower duties on Completely Built Units (CBUs) could harm Original Equipment Manufacturers (OEMs) and their suppliers, disrupting the growth of the domestic auto sector.
Minister Hussain dismissed these concerns, highlighting that the International Monetary Fund (IMF) had no objections to the subsidies and tax exemptions under the NEV policy. He stressed that the initiative is critical for reducing fuel dependency and fostering economic growth.
Other key initiatives include offering free electric bikes to 120 high-achieving students and establishing a New Energy Fund and New Energy Vehicle Centre to drive policy implementation. Despite some industry reservations, the government remains committed to electrifying 30% of vehicles in Pakistan by 2030.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
