ISLAMABAD: The federal government has received a detailed proposal from thePunjab Transport Department recommending Rs57 billion in incentives toaccelerate the adoption of electric vehicles across Pakistan. Thisinitiative focuses on direct subsidies for electric motorcycles, rickshaws,cars, buses, and commercial vehicles while emphasizing infrastructuredevelopment and local manufacturing support. The plan aims to reduce themassive fuel import bill, curb urban air pollution, and provide affordable,clean transportation options to ordinary citizens amid rising energy costsand environmental concerns.
The core of the proposal lies in targeted subsidies designed to makeelectric vehicles competitive against conventional petrol and dieseloptions. For electric motorcycles, a discount of Rs20,000 to Rs30,000 perunit has been suggested to encourage widespread uptake among dailycommuters and youth. Electric rickshaws, a vital part of urban publictransport, would receive up to Rs25,000 in direct incentives, helpingoperators lower operational expenses and pass savings to passengers. Thesemeasures address the high upfront costs that have hindered EV penetrationin a market dominated by affordable internal combustion engines.
Small electric cars would qualify for subsidies of up to Rs100,000, whilelarger passenger vehicles could attract Rs200,000 in support, makingfamily-oriented electric mobility more accessible. For buses and commercialfleets, incentives ranging from Rs400,000 to Rs500,000 per vehicle areproposed to facilitate the transition of public and logistics transport.Additionally, a trade-in rebate scheme for scrapping old, pollutingvehicles in exchange for new electric models is under consideration,promoting fleet renewal and reducing roadside emissions effectively.
Infrastructure forms a critical pillar of the proposal, with a specifictarget to install 1,200 Level-1 charging points in Lahore alone to supportgrowing EV usage in the provincial capital. The plan includes establishing400 battery swapping stations and 300 fast-charging facilities nationwide.Investors in charging infrastructure would benefit from capital subsidiesand tax exemptions, while existing petrol stations converting to hybridcharging points would receive property tax relief, encouraging privatesector participation in building a robust network.
To bolster domestic industry, the recommendations include research grantsfor local manufacturers, establishment of battery testing laboratories, andspecial incentives for battery recycling plants. These steps aim to achievehigh localization levels, similar to the over 90 percent indigenizationalready seen in conventional two-wheelers, and create jobs in assembly,maintenance, and component production. Phased electrification ofgovernment, municipal, and public transport fleets is also advocated togenerate initial demand and demonstrate viability.
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The overarching objectives of this Rs57 billion package are to slashPakistan’s dependence on imported fossil fuels, which strain foreignreserves, and mitigate severe air pollution in cities like Lahore andKarachi. By promoting electric mobility, the government seeks to offercitizens cheaper, cleaner, and more modern travel alternatives whilealigning with global sustainability trends. Savings from reduced fuelconsumption could run into billions annually, freeing resources for otherdevelopment priorities.
Implementation would involve close coordination between federal ministries,provincial authorities, and private stakeholders to ensure transparentdisbursement and monitoring. The Punjab Transport Department’s submissionreflects ongoing efforts under the broader National Electric Vehicle Policyframework to achieve significant EV penetration targets in the comingyears. If approved, these incentives could mark a turning point inPakistan’s transport sector, fostering economic resilience andenvironmental improvement.
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