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Electric Vehicles in Pakistan

By / November 29, 2019

Electric Vehicles in Pakistan

SRO for Electric Vehicles in Pakistan industry to be issued soon: PM Advisor (By Associated Press of Pakistan on )

 

  • The policy will strengthen the auto industry in the country and reduce the environment pollution.
  • He said that the policy was drafted by Federal Ministry of Climate Change which has been approved by the cabinet.
  • Malik said the country was now surplus in electricity generation at 18,000 MW against the demand of 10,000 MW per day.
  • KARACHI: Advisor to the Prime Minister on Climate Change, Malik Amin Aslam Khan on Thursday assured electric vehicles and parts manufacturers, and traders that the government will soon issue Statutory Regulatory Order (SRO) for them to successfully execute the recently announced Pakistan Electric Vehicles Policy for conversion of vehicles to electric batteries.
    The policy will strengthen the auto industry in the country and reduce the environment pollution.
    It would help reduce motor emission by 65 percent. Pakistan’s cities mainly Lahore is worst affected smoke emitted by vehicles, said the Advisor at a press briefing at a local hotel.
    He was flanked by the office-bearers of Pakistan Electric Vehicles and Parts Manufactures, and Traders Association including Muhammad Ayaz, Shaukat Qureshi and Muhammad Ayaz.
    He said that the policy was drafted by Federal Ministry of Climate Change which has been approved by the cabinet.
    “Soon, you will get incentives package under this policy,” he re-assured the electric vehicles manufacturers and traders and said his Ministry and Federal Ministry of Industries were jointly working on the package and SRO in this regard would be issued soon.
    The conversion of vehicles to electric mode would save billions of dollars for the country every year on account of imported oil bill.
    Besides being environment friendly, the electric vehicles in Pakistan would prove user friendly and very economical.
    The motorbikes would save up to 60 percent of their fuel cost, he said.
    Malik said the country was now surplus in electricity generation at 18,000 MW against the demand of 10,000 MW per day.
    This would create opportunities of new businesses like setting up electric charging stations and manufacturing of the electric batteries/kits, he said.
    He said Pakistan Tehreek-i-Insaf government especially Prime Minister Imran Khan was keen to promote electric vehicles industry in the country for the above benefits.
    He said that the electric vehicles business was flourishing in the world and Pakistan should lead in the region.
    He said, in the support of this industry, the government would set up a research institute, which later would be upgraded to a university.
    The Minister informed the media that Chinese companies were interested to set up plants to manufacture electric batteries.
    Vice Chairman of the association, Muhammad Ayaz appreciated the efforts of Advisor to Prime Minister on Climate Change for formulation of Pakistan Electric Vehicles Policy and its approval by the cabinet.
    “It is timely step by the government to induct electric vehicles in Pakistan. This great task is completed within short time,” he remarked.
    The country would have healthy environment by going to zero-tail omission and noise pollution.
    Another representative Shaukat Qureshi said by 2030, around vehicles in the country would be converted into electric mode of energy.
    He said that the existing auto manufacturing companies might create hindrances in the execution of electric vehicles (EV) policy but could not stop it.
    “EV tsunami is coming, whether one like or not,” he remarked.

 

Current Landscape of Electric Vehicles in Pakistan (2025)

Pakistan’s EV market is in its early adoption phase, but momentum is building.

  • Key Players:

    • MG (SAIC): The pioneer with the MG ZS EV, the first mass-market EV. They’ve also introduced the MG4 (a global model).

    • Audi, BMW, Porsche: Offering luxury EVs (e-tron, i-Series, Taycan) for the high-end market.

    • BYD: Entered with the BYD Atto 3, gaining attention for its range and tech.

    • Hyundai: Recently launched the Ioniq 5.

    • Local Assemblers: Companies like Jolta are introducing locally assembled e-bikes and e-rickshaws, which are seeing faster adoption.

  • Infrastructure: Charging stations are sparse but growing, mainly concentrated in Karachi, Lahore, and Islamabad on major highways and in some malls. Apps like “Chargemate” help locate them.

Government Policy & Incentives Electric Vehicles in Pakistan(A Major Driver)

The government introduced a National Electric Vehicle Policy (NEVP) in 2020 with ambitious targets (30% of new vehicles to be electric by 2030). Key incentives include:

  • Lower Taxes: Significant reduction in customs duty, sales tax, and federal excise duty on import/assembly of EVs and parts.

  • Tariff Incentives: Reduced electricity tariffs for EV charging stations during off-peak hours.

  • Ease of Registration: Simplified and cheaper registration processes.

The Major Advantages & Opportunities for Electric Vehicles in Pakistan

  1. Economic & Fuel Import Bill: Pakistan spends billions on imported fossil fuels. Widespread EV adoption could drastically cut the oil import bill, saving vital foreign exchange.

  2. Environmental Impact: Major cities (Lahore, Karachi) suffer from severe air pollution. EVs produce zero tailpipe emissions, improving urban air quality.

  3. Lower Operational Cost: Electricity is cheaper than petrol/diesel. The cost per km for an EV is a fraction of an ICE vehicle, a huge incentive for high-mileage users (e.g., ride-hailing, corporate fleets).

  4. Energy Mix Potential: Pakistan has surplus electricity generation capacity at night. Smart charging could utilize this idle capacity, making the grid more efficient.

  5. Local Manufacturing/Assembly: The policy aims to develop a local EV ecosystem, creating jobs in assembly, battery servicing, and charging infrastructure.

The Significant Challenges & Hurdles of Electric Vehicles in Pakistan

  1. High Upfront Cost: Despite lower taxes, EVs are still 2-3 times more expensive than comparable petrol cars, putting them out of reach for the average consumer.

  2. Charging Infrastructure: The “range anxiety” is real. The public charging network is underdeveloped, especially for long-distance travel. Home charging is also a challenge in multi-story buildings without dedicated parking.

  3. Unstable & Expensive Electricity: Power outages (load-shedding) and rising electricity tariffs undermine the cost advantage and reliability.

  4. Grid Capacity: A mass shift to EVs will require a massive upgrade to the national grid and distribution systems to handle the increased load.

  5. Battery Concerns: Fear about battery life in extreme heat, high replacement costs, and lack of a standardized recycling/repurposing system.

  6. Consumer Mindset: Lack of awareness, trust in new technology, and reliance on established gasoline models.

The Two-Wheeler & Three-Wheeler Segment: The Real Game Changer

While cars get attention, the most impactful adoption is happening here:

  • E-Bikes & E-Rickshaws: They are more affordable, perfect for short urban trips, and have a clear TCO (Total Cost of Ownership) advantage. Companies like Jolta, Metro, and Road Prince are active here.

  • Impact: This segment can reduce pollution and noise drastically in dense cities and lower operating costs for low-income earners.

Future Outlook & What’s Needed

  1. Infrastructure First: Aggressive investment in public charging networks (fast & slow) is critical to build consumer confidence.

  2. Affordable Models: The entry of mid-range, affordable EVs (possibly through local assembly like Proton) is essential for mass adoption.

  3. Policy Consistency & Implementation: The government must ensure consistent, long-term policies beyond political cycles to attract serious investment.

  4. Financing Solutions: Banks need to offer attractive EV-specific financing with lower interest rates to offset the high sticker price.

  5. Local Battery Ecosystem: Developing local capacity for battery assembly, maintenance, and second-life use is crucial for long-term sustainability.

Conclusion

Electric Vehicles in Pakistan represent a promising but challenging frontier. The economic and environmental imperative is strong. While the luxury and two-wheeler segments are gaining traction, true mass adoption for cars depends on solving the trifecta of price, infrastructure, and stable electricity.

The next 3-5 years will be critical. If infrastructure develops, affordable models arrive, and policies remain stable, Pakistan could see an EV revolution that starts with e-rickshaws and bikes, eventually transforming the entire transport sector. If not, EVs risk remaining a niche product for the elite.

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