Key Takeaways
- Pakistan expects to meet its electric vehicle adoption targets ahead of schedule.
- Rising oil prices are reducing the payback period for EVs, making them more attractive to consumers.
- The government is considering tax incentives to further promote EV adoption.
Pakistan is anticipating an earlier achievement of its electric vehicle (EV) adoption targets, driven by the recent surge in oil prices. According to Haroon Akhtar, adviser to the prime minister on industries and production, the rise in fuel costs is accelerating the cost recovery period for EVs to one to one-and-a-half years, compared to the original target timeframe.
The government's National Electric Vehicles Policy (NEVP) was launched in 2019 with ambitious goals, aiming for 30% of all passenger vehicles and heavy-duty trucks to be electric by 2030, and 90% by 2040. These targets are now expected to be met sooner due to the current economic conditions.
Petrol and diesel prices have increased significantly, with Pakistan State Oil Company Ltd reporting a 54% and 43% rise, respectively, since the start of the Middle East conflict in February. This has made EVs more financially viable for consumers, as the higher upfront cost is now being recovered faster.
Akhtar also mentioned that the government is preparing a new auto policy, which could be presented to the cabinet within the next two weeks. This policy is expected to include tax incentives to narrow the price gap between EVs and conventional vehicles, further encouraging their adoption.
The NEVP 2025-30, which was finalised in November 2024 and approved in October 2025, is part of the broader strategy to reduce fuel import bills, improve environmental conditions, and foster a sustainable transport system. The policy aims to address the challenges of high oil prices and promote the use of cleaner, more efficient vehicles.
While the government is optimistic about the early achievement of its EV targets, it is also aware of the need to support the transition through financial incentives. The proposed tax incentives are expected to play a crucial role in making EVs more accessible to the general public.
The surge in oil prices has not only affected Pakistan but has also impacted global markets. Brent crude futures rose $2.28, or 2.28%, to $102.28 a barrel by 0427 GMT, while US West Texas Intermediate (WTI) crude futures gained $1.66, or 1.88%, to $89.94. These increases are contributing to the accelerated adoption of EVs in Pakistan.
The government's proactive approach to promoting EVs through policy and incentives is seen as a strategic move to address both economic and environmental challenges. The early achievement of the EV targets could have significant implications for Pakistan's energy and transportation sectors.
I feel that the target we had set in our electric-vehicle policy last year, we will achieve it much earlier as the rise in oil prices has brought cost recovery of EVs to one to one-and-a-half year.
Haroon Akhtar, Adviser to the prime minister on industries and production
