Pakistan is taking a decisive step towards a cleaner, more resilient future. Confronted by twin crises – mounting climate threats and economic instability – the country is reimagining how its citizens move. With cities choked by pollution and billions spent each year on imported fuel, the Government of Pakistan has launched its New Energy Vehicle (NEV) Policy 2025–30, a national framework to drive cleaner mobility, green investment, and inclusive growth.

Backed by the UK’s Foreign, Commonwealth & Development Office (FCDO) under the Revenue Mobilisation, Investment and Trade (REMIT) Programme – implemented by ASI – the policy represents a new era of collaboration. Developed through over 60 consultations with academia, industry, and civil society, it blends international best practice with Pakistan’s development priorities and climate commitments.

Turning Policy into Progress

Under the leadership of the Prime Minister, the Ministry of Industries & Production has set out a roadmap that links environmental action with economic renewal. The NEV Policy introduces reforms across four key areas:

• Boosting Local Production: Incentives for domestic EV manufacturing, stronger quality standards, and apprenticeship schemes to prepare a green-skilled workforce.

• Making Clean Mobility Affordable: Subsidies for e-bikes and e-rickshaws, funded through a levy on traditional combustion vehicles.

• Building Charging Infrastructure: Concessional tariffs and viability funding to establish a nationwide network of charging stations.

• Driving Innovation: Creation of a New Energy Vehicle Centre (NEVC) to support research, investment, and carbon market participation.

What This Means for Pakistan

The policy is already shifting the landscape. Pakistan has gone from just 567 electric vehicles in 2021 to over 80,000 today – a sign that clean mobility is gaining real traction. By 2030, the goal is for 30% of all new vehicles to be electric, supported by 3,000 charging stations across the country.

In its first phase, the government has committed Rs. 9 billion (FY 2025–26) to accelerate adoption under the Pakistan Accelerated Vehicle Electrification (PAVE) programme – supporting 2.2 million EVs through Rs. 100 billion in financing. This includes innovative initiatives such as free e-bikes for top-performing students and the distribution of 116,000 e-bikes and 3,100 e-rickshaws, with a quarter reserved for women under the Gender Empowerment and Mobility Drive.

Clean Mobility, Shared Prosperity

The NEV Policy isn’t just about cars and batteries – it’s about transforming how Pakistan grows. By replacing imported fuel with locally produced energy, the policy will save Rs. 538 billion (£1.4 billion) and cut 4.5 million tonnes of carbon emissions. It will also open new industries in battery production, EV assembly, and charging technology – creating thousands of green jobs and attracting foreign investment.

Equally important, the policy is inclusive. Women and students are gaining access to affordable mobility options, while small businesses – from milk vendors to delivery services – are reducing costs and expanding their reach with electric vehicles.

The NEV Policy places sustainability, innovation, and inclusion at the centre of Pakistan’s development model. It signals to the world that Pakistan is ready to lead on green mobility – not as a bystander, but as an active participant in the global energy transition.

“With my electric rickshaw, I can now carry and sell 500 litres of milk a day. It has completely changed my business.”
— M. Shafique, Dairy Farmer

“This is pushing Pakistan towards a cleaner, greener future. I encourage all women to consider EV bikes – it’s empowering.”
— Ockash Manzoor, EV User