Aleem Khan says 30pc vehicles will be electric by 2030
Business
New Energy Vehicle (NEV) policy released
ISLAMABAD (Web Desk) - Privatisation Minister Abdul Aleem Khan said on Thursday 30 percent of vehicles in Pakistan would be converted to electric by 2030, it is reported, as Pakistan takes step to combat air pollution and other climate change effects.
The minister was echoing the government’s New Energy Vehicle (NEV) policy released on Wednesday, which is aimed at transitioning 30 percent of all new vehicles — imported and locally manufactured — to electric power by 2030.
Hybrid electric vehicle sales in Pakistan have more than doubled in the past year. BYD Pakistan, a partnership between China’s BYD and Pakistani car group Mega Motors, said in September up to 50 percent of all vehicles bought in Pakistan by 2030 will be electrified in some form in line with global targets.
Warren Buffett-backed Chinese electric vehicle giant BYD announced its entry into Pakistan in August, making the nation of 250 million people one of its newest markets.
“Pakistan aims to convert thirty percent of its vehicles to electric by 2030,” Khan said as he addressed the “Transport and Digital Middle Corridor and Beyond” session at the ongoing UN COP29 summit in Baku.
“Significant steps are underway to support the widespread adoption of electric vehicles in Pakistan … the government is actively working on infrastructure development for EVs, including the installation of charging stations.”
Under the new EV policy, the government has introduced subsidies of Rs50,000 for electric motorcycles and Rs200,000 for three-wheelers like rickshaws, with a total allocation of Rs4 billion.
These subsidies will be distributed through auctions. So far, two companies have been granted licenses, and 31 more applications are under review.
The policy also incorporates a reduction in the policy rate from 22 to 15 percent, with financing available at a 3 percent Kibor (Karachi Interbank Offered Rate) and the government covering the financial cost.
Consumers will pay monthly installments of around Rs9,000 over two years, an amount lower than their projected fuel savings.
A Credit Loss Guarantee managed by the Finance Division will ensure no financial burden on the Ministry of Industries or consumers.
Additional initiatives include offering free electric bikes or scooters to 120 high-achieving students and reducing duties on EV components to encourage local manufacturing.
The government is also set to establish a New Energy Fund and a New Energy Vehicle Center to support these measures.
BYD Pakistan is collaborating with two oil marketing companies to establish a charging infrastructure network and aims to establish 20 to 30 charging stations within the initial phases concurrent with the rollout of its cars.
BYD Pakistan will initially sell fully assembled vehicles, which are subject to higher import charges than vehicles shipped in parts and assembled locally. Dewan Motors is also set to launch its EVs under the completely knocked down (CKD) license.
