PM Shehbaz Unveils Electric Vehicle Plan to Slash Fuel Imports and Boost Citizens

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Prime Minister Shehbaz Sharif launched Pakistan’s National Electric Vehicle (EV) Policy 2025-30 on July 18, 2025, targeting a 30% EV share in auto sales by 2030 to reduce fuel imports and empower students and unemployed citizens. The initiative, backed by Rs9 billion in subsidies, aims to foster local industry and environmental sustainability.

Speaking at a high-level meeting in Islamabad, Sharif emphasized EVs as a solution to Pakistan’s $1 billion annual fuel import bill, aligning with the “Clean Green Pakistan” vision. “This policy will save billions and create jobs,” he said, per Arab News, directing officials to prioritize economically disadvantaged groups. The plan includes distributing 116,053 electric bikes and 3,171 rickshaws, with 25% of subsidies reserved for women to enhance safe mobility. Free electric bikes will also reward top-performing students, mirroring past laptop schemes, while low-cost loans will support unemployed individuals in acquiring rickshaws for self-employment.

The policy incentivizes local production, with over 90% of two- and three-wheeler parts already manufactured domestically, making EVs 30-40% cheaper than imports, according to Special Assistant Haroon Akhtar. A Rs9 billion subsidy for 2025-26, coupled with exemptions on customs duties and sales tax, aims to bolster Small and Medium Enterprises (SMEs) in the EV supply chain. Additionally, 40 new charging stations will be installed along motorways, spaced 105 kilometers apart, with battery-swapping systems and vehicle-to-grid (V2G) integration to ensure accessibility, as outlined by Business Recorder.

Economic benefits are substantial, with projected savings of Rs800 billion over 25 years through reduced fuel imports and carbon credit revenues. Akhtar noted that EV users could recover costs within two years due to lower charging costs compared to petrol. However, the Pakistan Automotive Manufacturers Association (PAMA) raised concerns about potential harm to local industries from imported Completely Built Units (CBUs), urging stricter regulations to protect domestic manufacturing.

As Pakistan grapples with energy and economic challenges, this EV push signals a bold step toward sustainability and self-reliance. With four new battery manufacturers entering the market, the policy promises job creation and a greener future, provided implementation overcomes bureaucratic hurdles.