Islamabad, July 29, 2025: In a bold move toward sustainable transportation, the Government of Pakistan is preparing to unveil its Electric Vehicle Policy 2025 on August 14, aligning with the nation’s Independence Day celebrations.
This updated framework, created in collaboration with the International Monetary Fund (IMF), puts strong emphasis on electric bikes and rickshaws to reduce reliance on fuel-based vehicles and promote clean energy alternatives.
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The new electric vehicle policy Pakistan 2025 spans five years and will remain effective until 2030. This long-term roadmap addresses the gaps of the previous policy, which fell significantly short of its intended goals.
Where the initial target aimed for half a million two- and three-wheelers, only 50,000 reached the market. Similarly, electric bus deployment remained underwhelming, with just 200 units rolled out against a 1,000-unit benchmark.
Rs. 9 Billion Allocated for FY25 to Support Electric Bikes
To accelerate EV adoption, Rs. 9 billion from a total subsidy package of Rs. 100 billion has been allocated for the current fiscal year. This amount will directly support the distribution of 116,000 electric bikes over the next two years. Each EV unit—whether a two-wheeler or rickshaw—will benefit from a government subsidy of approximately Rs. 50,000, significantly lowering the purchase cost for consumers.
The policy’s gradual expansion plans to allocate increased financial support in the coming years:
- FY27: Rs. 19 billion
- FY28: Rs. 24.16 billion
- FY29: Rs. 26.62 billion
- FY30: Rs. 22.64 billion
This consistent funding demonstrates the government’s long-term commitment to developing an energy-efficient, eco-friendly transportation network in the country.
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Shift in Focus: From Cars to Mass Mobility
Unlike the earlier strategy, which emphasized electric four-wheelers and trucks—sectors that performed poorly with just 3,000 and 1,000 units on the road—the 2025 EV policy prioritizes mass urban mobility. By focusing on electric motorcycles and rickshaws, the government aims to directly impact daily commuters and low-income earners who rely on affordable transportation.
The formal announcement is expected to be made by Prime Minister Shehbaz Sharif on August 14, symbolizing Pakistan’s independence from fossil fuel dependence and its transition to green energy.
