The federal government is set to launch a new five-year electric vehicle (EV) policy on August 14, aimed at accelerating the adoption of electric bikes and rickshaws across the country. The policy is being rolled out with the support of the International Monetary Fund (IMF), which has approved a Rs. 100 billion subsidy package for this green transition.
According to officials from the Ministry of Industries and Production, the new policy will prioritize two- and three-wheeler EVs, with 116,000 electric bikes expected to be distributed in the first two years of implementation. Each electric bike and rickshaw will benefit from a Rs. 50,000 subsidy, making them more affordable for the public.
As part of the current fiscal year (FY25), the IMF has allocated Rs. 9 billion from the total package to kick-start the project. The EV policy is designed to address the shortcomings of the previous initiative, which fell drastically short of its targets. Out of a goal of 500,000, only 50,000 electric bikes and rickshaws were introduced. Similarly, only 200 electric buses were deployed against a target of 1,000, and just 3,000 electric cars and 1,000 trucks entered the market out of a 100,000-unit goal.
Looking ahead, the policy outlines yearly subsidy allocations:
Rs. 19 billion in FY27
Rs. 24.16 billion in FY28
Rs. 26.62 billion in FY29
Rs. 22.64 billion in FY30
The initiative will continue through 2030, aiming to boost sustainable transport and reduce Pakistan’s dependency on fossil fuels. Prime Minister Shehbaz Sharif is expected to announce the policy officially during Independence Day celebrations on August 14.
