Government Weighs New Taxes on Imported Electric Vehicles to Boost Local Industry
The federal government is considering imposing new taxes on imported electric vehicles (EVs) as part of Pakistan’s first-ever Electric Vehicle Policy, aiming to cut the transport sector’s import bill by up to $9 billion and promote local manufacturing.
The plan was discussed during a meeting of the Senate Standing Committee on Industries and Production at Parliament House, chaired by Senator Khalida Ateeb. Officials informed the committee that while imported EVs and EV parts may face duties, locally manufactured electric vehicles will benefit from zero or minimal taxes to encourage domestic production.
The Ministry of Industries revealed that licenses have already been issued for EV manufacturing, including 17 licenses for three- and four-wheelers and 77 for electric motorcycles. By 2030, the government targets 30 percent EV penetration, with around 2.2 million electric vehicles expected on roads.
To accelerate adoption, subsidies of Rs 80,000 for electric bikes and Rs 400,000 for electric rickshaws are being offered, funded through a Rs 120 billion carbon levy. Authorities have also identified 40 EV charging locations nationwide and plan legislation to mandate charging stations at petrol pumps.
