The Pakistan EV policy decides how much you pay for an electric bike, rickshaw or car. In fact, it also shapes charging rates, subsidies and even the tax on new petrol cars. Basically, the main document is the New Energy Vehicles (NEV) Policy 2025-30. This guide explains it in plain words, as well as the latest budget changes and provincial schemes.
This article gives general information only. Policies, taxes and scheme rules change often, so confirm details with the Ministry of Industries, the scheme portal or your provincial Excise office.
Pakistan EV Policy at a Glance
Initially, the federal government announced the NEV Policy 2025-30 in June 2025. Later, the Ministry of Industries and Production published the final document in August 2025. It covers electric bikes, rickshaws and cars, but also vans, trucks and buses.
Area
What the Policy Says
Main target
30% of new vehicle sales electric by 2030
Two-wheeler and rickshaw support
Cash subsidy through the PAVE programme
Four-wheeler support
Up to Rs 15,000 per kWh or 5% of invoice, whichever is lower
Funding
About Rs 100 billion over five years
Petrol car levy
1% to 3% on new petrol vehicles by engine size
Charging
3,000 stations planned by 2030
Islamabad
No registration fee or annual token tax for NEVs
In short, this electric vehicle policy uses subsidies for EVs and a levy on petrol cars to push buyers towards electric.
Here are the key dates so far.
Date
What Happened
June 2025
Government announces NEV Policy 2025-30
August 2025
Final policy document issued
January 2026
First PAVE subsidy payments begin
May 2026
ECC approves PAVE phase 2
June 2026
Budget keeps 1% sales tax on local EVs
September 2026
Punjab launches student e-bike phase 2
Targets Under the Pakistan EV Policy
Overall, the headline goal is simple. Electric vehicles should make up 30% of new sales by 2030. After that, the policy aims for 50% by 2040 and 100% by 2050.
In numbers, the policy plans for about 2.2 million new energy vehicles over five years. Most of these are two-wheelers, because bikes are what most Pakistanis ride. So here is the planned split.
Vehicle Type
Planned Total (2025-30)
Two-wheelers
About 2.05 million
Three-wheelers (rickshaws, loaders)
About 54,000
Four-wheelers (cars, SUVs)
About 99,000
Buses, trucks, vans and LCVs
About 5,200
Thus, the Pakistan EV policy bets most heavily on electric motorcycles. Therefore, bike buyers feel its effect first. In fact, the yearly targets also rise sharply, from about 116,000 e-bikes in the first year to over 740,000 in the last.
PAVE: Subsidies for E-Bikes and Rickshaws
PAVE stands for Pakistan Accelerated Vehicle Electrification, while the Engineering Development Board runs it under the Ministry of Industries.
To begin with, the first phase targeted 41,000 vehicles. Demand was huge, since ProPakistani reported about 269,000 applications. However, banks approved only a small share of cases, so delivery stayed slow. Because of this, the ECC approved a revised second phase in May 2026.
E-bike subsidy: A fixed Rs 80,000 per bike.
E-rickshaw and loader subsidy: Up to Rs 400,000 per unit.
Allocation: First-come, first-served instead of balloting.
Payment: The subsidy goes to approved manufacturers, so buyers pay the net price.
Government employees: Federal staff in BS-16 and below get an interest-free self-finance option.
Students: About 600 free e-bikes for top HSSC position holders.
Besides, the policy reserves 25% of the subsidy for women. Overall, PAVE is the main EV subsidy in Pakistan that ordinary buyers can actually use today. For bike models and prices, see our guide to electric motorcycles in Pakistan.
Car and Bus Subsidies in the Pakistan EV Policy
The policy also allows a cost-sharing subsidy for four-wheelers, vans, trucks and buses. The amount is Rs 15,000 per kWh of battery or 5% of the invoice value, whichever is lower.
For example, here is a simple case. A car with a 50 kWh battery could qualify for Rs 750,000 under the per-kWh formula. However, if the car costs Rs 90 lakh, 5% is only Rs 450,000. Therefore, the lower figure of Rs 450,000 would apply.
However, the subsidy shrinks over time. From year three, it falls to 80%, then 60% and then 40% of the original amount. In other words, early buyers get the most support.
So far, most actual payments have gone to bikes and rickshaws through PAVE. Therefore, check with the dealer whether any subsidy applies before you book an electric car.
Taxes and Duties on EVs After Budget 2026-27
Taxes matter as much as subsidies. Here is what the 2026-27 budget kept or changed.
Locally made EVs: The reduced 1% sales tax still continues.
EV kits for local assembly: A 1% customs duty on EV-specific CKD parts continues until June 30, 2027.
Imported EVs under $50,000: The 25% concessionary customs duty continues until June 2027.
Expensive imported EVs: The budget announced 0% extra duty up to Rs 20 million, 30% for Rs 20 to 30 million and 40% above Rs 30 million.
Hybrids: Locally made hybrids up to 1800cc keep the 8.5% sales tax rate. See our guide to hybrid cars in Pakistan for models.
As a result, most EVs sold here did not see a price rise after the budget. For example, BYD kept its prices unchanged. You can also check current prices in our electric cars price list.
The NEV Levy on Petrol Cars
The other side of the policy is a levy on new petrol and diesel vehicles. FBR collects it during the first sale or import of these vehicles.
Vehicle Category
NEV Levy
Below 1300cc
1%
1300cc to 1800cc
2%
Above 1800cc
3%
Buses and trucks
1%
The government then uses this money to fund EV subsidies. For example, a Rs 50 lakh petrol car under 1300cc would carry roughly Rs 50,000 in levy at 1%. Moreover, reports say a climate support levy on petrol and diesel also helps pay for PAVE. So in simple terms, petrol users help pay for the shift to electric.
Charging Rules in the Pakistan EV Policy
However, charging is the biggest worry for most buyers. Still, the policy sets clear goals here.
40 fast-charging stations on motorways and parts of the N-5 as a first step.
Then about 3,000 charging and battery-swap stations by 2030.
In addition, oil marketing companies must offer fast chargers at 10% of their outlets in each province.
Also, new building rules should include EV charging points.
Similarly, battery swapping and vehicle-to-grid systems should get support.
Meanwhile, NEPRA cut the base electricity rate for charging stations to about Rs 23.57 per unit in April 2025. However, operators now set their own margin on top. For locations and prices, read our guide to EV charging stations in Pakistan.
Local Manufacturing and Battery Recycling
Under the Pakistan EV policy, the government also wants more EVs built here. According to policy reports, local makers already produce over 90% of parts for electric two- and three-wheelers. In addition, SMEs get support packages to join the EV supply chain.
For cars, the current auto incentives under AIDEP 2021-26 ran until June 2026. After that, the policy plans to phase out special duty regimes by 2030. Meanwhile, BYD is building a plant near Karachi, and reports expect local assembly in the second half of 2026.
The Pakistan EV policy also covers what happens after a battery dies. For example, it includes a battery disposal and recycling framework, with a focus on lithium-ion packs. Batteries must also carry labels on safety, chemistry and disposal. As a result, old packs should go to proper recycling instead of local scrap yards.
Registration, Token Tax and Toll Benefits
Under the policy, EVs registered in Islamabad pay no registration fee and no annual token tax. In addition, the policy encourages provinces, GB and AJK to offer similar waivers.
Similarly, the policy asks the National Highway Authority to consider toll exemptions for EVs. However, these are recommendations for provinces and NHA, not automatic rules. So always confirm current fees with your Excise office before registering. Our guide to vehicle taxes in Pakistan explains how these fees normally work.
Provincial EV Schemes: Punjab, Sindh and Islamabad
Provinces also run their own programmes alongside the federal policy.
Punjab launched phase 2 of its student e-bike scheme in September 2026, with interest-free instalments. Earlier, it also announced an e-taxi scheme, which we cover in our Punjab e-taxi scheme post.
Sindh, too, has approved plans for hundreds of public charging stations with private partners. For instance, Dawn reported that Sindh is providing Rs 750 million for 300 stations in the first phase. Meanwhile, Islamabad is the policy’s model electric mobility city.
Region
Main EV Support
Federal (PAVE)
Rs 80,000 per e-bike, up to Rs 400,000 per rickshaw
Punjab
Interest-free student e-bikes, e-taxi scheme
Sindh
Public charging station plan
Islamabad
No registration fee or annual token tax for NEVs
What the Pakistan EV Policy Means for Buyers
So for bike riders, the message is clear. Subsidies and lower running costs make e-bikes cheaper than ever. Therefore, check PAVE and provincial schemes before buying any new bike.
For car buyers, the benefits are smaller but real. Low sales tax keeps EV prices down, while the levy makes petrol cars a little costlier. Also, Islamabad buyers save on registration and token tax.
Financing is another area to watch. At present, bank car loans have a Rs 3 million cap and a 30% minimum down payment. However, the policy asks the Ministry of Industries to review these limits with the State Bank. So the Pakistan EV policy may also make EV loans easier in future.
Overall, the Pakistan EV policy is more generous to bikes than to cars right now. However, policies can change with each budget. For example, the government is also reviewing a new auto sector policy. So treat any promise as temporary until it appears in an official notification.
FAQs
When did the Pakistan EV policy start?
The government announced the NEV Policy 2025-30 in June 2025. Then, the final policy document came out in August 2025, and it runs until 2030.
Is there a government subsidy on electric cars?
Also, the policy allows a subsidy for four-wheelers based on battery size. However, most actual payments so far have gone to e-bikes and rickshaws. So ask the dealer before counting on it.
Do electric vehicles pay token tax?
In Islamabad, NEVs pay no registration fee or annual token tax under the policy. In other provinces, however, rules differ. Therefore, confirm with your provincial Excise office.
How do I apply for the e-bike subsidy?
Generally, you apply through the official PAVE portal with your CNIC. Since phase 2 works on a first-come, first-served basis, apply early and buy only from an approved manufacturer.
Will the Pakistan EV policy change again?
Probably, yes. After all, each budget can change taxes and duties. In fact, a new auto policy is also under review, so check for updates every year.
Final Word
To sum up, the Pakistan EV policy uses subsidies, low sales tax and a levy on petrol cars to push the country towards electric. Overall, bike buyers gain the most right now, while car buyers mainly benefit from lower taxes. Because rules change often, always read the source. You can read the full NEV Policy 2025-30 document on the Ministry of Industries and Production website.
