Pakistan Launches Electric Vehicle Policy 2025 with Rs9 Billion Subsidy for E-Bikes and Rickshaws
In a landmark move to transition toward sustainable transportation and reduce dependence on imported fuel, the federal government has introduced the Electric Vehicle (EV) Policy 2025, featuring an ambitious subsidy program and a clear roadmap to boost local electric mobility.
A central element of the five-year policy is a Rs9 billion subsidy package unveiled in the upcoming fiscal year budget. This allocation targets the mass adoption of electric bikes and rickshaws, with more than 116,000 e-bikes and over 3,000 e-rickshaws set to benefit. The government has also ensured inclusivity by reserving 25% of these subsidies for women users.
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Officials disclosed that the subsidy pool will be expanded over time, potentially reaching Rs100 billion, and will be financed through levies on older, high-emission vehicles. The policy aims to save up to 2.7 billion litres of petrol annually—translating into approximately $1 billion in savings on oil imports.
Beyond consumer incentives, the policy places strong emphasis on domestic production. A 90% localization target has been set for the manufacturing of electric two- and three-wheelers, which is expected to not only lower production costs but also create jobs and encourage industrial innovation in Pakistan’s auto sector.
To support this transition, the federal government plans to roll out 40 EV charging stations across the country in the first implementation phase. Additional infrastructure plans include the introduction of battery-swapping stations to address charging challenges and facilitate smoother adoption of electric mobility.
The policy follows recent directives from Prime Minister Shehbaz Sharif, who called for immediate action to support EV adoption and manufacturing during a high-level review meeting in Lahore. Stressing urgency, the premier instructed authorities to finalize the EV Policy 2025 draft for cabinet approval without delay and to complete consultations with relevant stakeholders.
He underscored the need to scale up local production capacity for electric motorcycles, scooters, cars, and buses, adding that government support would be critical to helping industries transition smoothly.
The Electric Vehicle Policy 2025 forms part of Pakistan’s broader green energy initiative, aimed at reducing carbon emissions, modernizing the transport sector, and achieving long-term environmental and economic sustainability.
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