ISLAMABAD: The government is considering imposing taxes on imported electric vehicles (EVs) to help curb the transport sector’s $9 billion import bill, while offering minimal or zero taxation on locally manufactured EVs, the Senate Standing Committee on Industries and Production was informed on Monday.
The meeting, chaired by Senator Khalida Ateeb and attended by Senators Danesh Kumar and Syed Masroor Ahsan, was briefed by officials from the Ministry of Industries and Production and the Federal Board of Revenue (FBR).
According to a statement issued by the Senate Secretariat, officials said efforts were underway to tax imported EVs, while keeping taxes on locally assembled or manufactured electric vehicles low or nil. In addition, extra duties have been imposed on the import of EV parts that are already being manufactured locally, with the aim of encouraging domestic production.
The Ministry of Industries and Production also advised provincial governments to extend facilitative measures for EV adoption, including waiving registration fees for electric vehicles, introducing uniform number plates across the country, and charging reduced tolls for EVs.
Local manufacturing, targets
The committee was briefed on the current policy framework for establishing EV manufacturing units in Pakistan, with a particular focus on two- and three-wheelers. Officials informed the panel that 77 licences for two-wheelers and 17 licences for three-wheelers have so far been issued.
The government aims to shift 30 per cent of vehicles in Pakistan to electric mobility by 2030. Under this target, around 2.2 million vehicles are expected to be provided to the public through government subsidies by the end of the decade.
Officials noted that Pakistan currently has about 20 million vehicles and over 20 million motorcycles. During the current year, 116,000 electric motorcycles and 3,170 electric rickshaws are planned to be provided to the public. Over the next five years, an estimated Rs120 billion is expected to be generated through a carbon levy, which will be utilised to subsidise electric vehicles.
The panel was also informed that work was underway to establish a one-window operation in coordination with the Board of Investment to facilitate investors. Officials added that licences of manufacturers who failed to export had been cancelled.
NEV Policy 2025–30
The New Energy Vehicles (NEV) Policy 2025–30 aims to reduce vehicular emissions, improve air quality, lower oil imports and make productive use of surplus electricity generation capacity.
The policy also seeks to lay the groundwork for a competitive local NEV industry through technology transfer, job creation and closer coordination between federal and provincial governments.
Under the policy, Pakistan plans to convert 30 per cent of new sales of motorcycles, rickshaws, passenger cars, light commercial vehicles, buses and trucks to new energy vehicles by 2030. Beyond the policy period, the country aims to increase NEV sales to 50 per cent by 2040 and achieve a net-zero transport fleet by 2060.
The policy acknowledges that high upfront costs remain a major barrier to NEV adoption in Pakistan, underscoring the need for price-reduction measures to bring EVs closer in cost to internal combustion engine vehicles, in line with regional and global practices.
Story by Rehan Ayub
