In a major push toward cleaner transportation, the Government of Pakistan will launch a fresh electric vehicle (EV) policy on August 14, backed by a substantial Rs. 100 billion subsidy approved by the International Monetary Fund (IMF). The new five-year policy focuses on promoting electric bikes and rickshaws, aiming to make eco-friendly transport more accessible to the masses.
The Ministry of Industries and Production confirmed that the IMF has allocated Rs. 9 billion for FY25, which will go toward subsidizing the first batch of vehicles. Over the next two years, 116,000 electric bikes are expected to be distributed under the policy, each receiving a subsidy of around Rs. 50,000.
This updated policy comes in response to the failure of Pakistan’s earlier EV plan, which met only a fraction of its goals. Out of an ambitious 500,000 target, just 50,000 two- and three-wheelers were introduced. Similarly, only 200 electric buses, 3,000 cars, and 1,000 trucks were deployed out of a 100,000-unit goal.
To ensure long-term success, the new policy includes increasing yearly allocations:
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Rs. 19 billion in FY27
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Rs. 24.16 billion in FY28
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Rs. 26.62 billion in FY29
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Rs. 22.64 billion in FY30
This comprehensive plan will run through 2030, aiming to reduce carbon emissions and lower fuel consumption. Prime Minister Shehbaz Sharif is expected to announce the policy officially on Independence Day, alongside the rollout of electric bikes across the country.