Ambitious EV policy

Pakistan’s NEV policy aims for 30% EV transition by 2030 but faces challenges in execution and feasibility.

The recently unveiled New Energy Vehicle (NEV) policy is a bold and ambitious step toward reducing Pakistan's reliance on imported petroleum and addressing the country's growing environmental challenges. Setting a target of transitioning 30% of new vehicles to electric power by 2030, the policy aims to align Pakistan with global trends in sustainable mobility. While the vision is commendable, its execution raises serious questions about its feasibility.

Central to the policy is the introduction of subsidies - Rs50,000 for electric motorcycles and Rs200,000 for three-wheelers - allocated through auctions. Paired with reduced duties on electric vehicle components, the government hopes to make EV adoption financially viable for consumers and attractive for manufacturers. The Pakistan Automotive Manufacturers Association has voiced reservations that allowing reduced-duty imports of completely built units (CBUs) risks undermining domestic manufacturing, threatening an already struggling industry. If CBU importers are not mandated to establish local production facilities, Pakistan's auto industry could become overly dependent on foreign imports, stifling job creation and technological growth at home. Moreover, the exclusion of hybrid electric vehicles from the policy focus represents a missed opportunity, offering immediate reductions in fuel consumption while laying the groundwork for a gradual shift to EVs. Pakistan's fiscal challenges, combined with the high cost of establishing and maintaining EV infrastructure, could strain public resources.

Also, the plan to establish 3,000 charging stations by 2030 is ambitious for a country grappling with chronic power shortages. Ensuring that these stations are affordable and reliable will be critical for consumer confidence and widespread EV adoption. While the NEV policy reflects a forward-looking vision, it risks falling into the trap of poor implementation and lack of stakeholder engagement. Ambition must be tempered with pragmatism and ultimately a clearer roadmap.