Pakistan wants electric vehicles to make up 30% of all new car sales by 2030. The plan is called the New Energy Vehicle (NEV) Policy 2025-30. It is being merged with the Automobile Policy 2026-31.
Officials say the shift could save $950 million in fuel costs. That equals 1.823 million tonnes of oil. The policy could also add Rs732.8 billion to the economy by 2030, according to a government briefing.
Why the push? Pakistan spent more than $16 billion on oil imports in 2024. Cars, trucks and bikes use up to 79% of that oil. Without change, transport fuel use could hit 18 million tonnes by 2030.
Tax Breaks for Buyers and Makers
Local EV makers get a low 1% customs duty on assembly kits and parts. This runs until June 2027. Cars made in Pakistan skip the Federal Excise Duty (FED) completely.
Imported EVs priced under Rs20 million also pay zero FED. Pricier imported EVs pay 30% to 40% FED instead.
Makers must also use more local parts over time. The target is 30% local content by 2028, rising to 50% by 2031.
