Pakistan to Save $1 Billion Annually After EV Shift

Pakistan’s new Electric Vehicle (EV) Policy is expected to save $1 billion annually in oil imports. This was revealed during a brief to the National Assembly’s Standing Committee on Finance, chaired by Syed Naveed Qamar. The committee reviewed the EV policy in detail and discussed its economic, environmental, and fiscal implications.  Naveed Qamar noted that the policy was introduced after the federal budget’s approval and contained certain contradictions that needed clarification. According to the Secretary of Industries and Production, the International Monetary Fund (IMF) has already endorsed the EV policy and provided USD 1.4 billion in financing, while the International Finance Corporation (IFC) pledged a USD 1.8 million grant to support EV infrastructure. Officials revealed that Pakistan currently has over 76,000 electric vehicles in operation, and several international manufacturers are planning to set up EV production facilities in the country. Under the new plan, Rs. 80,000 subsidy will be offered on electric motorcycles priced at Rs. 250,000, while the per-unit electricity rate for EV charging stations has been reduced from Rs. 92 to Rs. 39.7. The government aims to install 3,000 charging stations nationwide by 2030, with EVs expected to make up 30% of all new vehicle sales by then. Officials said that over Rs. 100 billion in subsidies would be provided during the next five years to encourage EV adoption.  Charging stations will be regulated by the National Electric Power Regulatory Authority (NEPRA), and owners will have the flexibility to set competitive charging rates. The Secretary of Industries also highlighted that widespread use of electric vehicles could improve public health, reducing the nation’s healthcare burden by up to USD 450 million through lower air pollution.