Pakistan’s EV Push May Fall Short Without Buyer Incentives, Experts Warn

As Pakistan moves closer to finalizing its New Energy Vehicle (NEV) policy, experts are urging policymakers to complement manufacturing incentives with consumer-focused support, arguing that stronger demand-side measures are essential for accelerating electric vehicle (EV) adoption and tackling worsening urban air pollution.

The draft policy targets 30% penetration of clean vehicles by 2030 and focuses largely on encouraging domestic manufacturing and investment in electric mobility. While industry development is considered a critical step, analysts believe consumer affordability will determine whether the transition succeeds.

Energy finance expert Shehbaz Iqbal says Pakistan’s strategy should not rely solely on expanding EV production capacity. Instead, he argues that incentives such as purchase rebates, vehicle scrappage schemes, concessional financing, and exemptions from registration and road taxes could encourage consumers to shift from conventional petrol-powered vehicles.

The debate comes as major Pakistani cities, including Lahore, Karachi, Multan, and Faisalabad, continue to experience hazardous air quality. Transport emissions remain one of the largest contributors to urban pollution, while the sector also consumes nearly 80% of the country’s petroleum products, increasing dependence on imported fuel.

Experts note that electrifying transport offers multiple economic and environmental benefits, including lower fuel imports, improved energy security, reduced greenhouse gas emissions, and better public health outcomes.

Iqbal pointed to international examples where governments paired industrial policies with consumer incentives to accelerate EV adoption. India recently introduced a multi-billion-dollar electric mobility program featuring incentives for scrapping older vehicles, tax exemptions, and financial support for EV buyers. Similar approaches have also been adopted across Europe and China, where consumer subsidies have helped drive rapid market growth.

According to industry estimates cited by experts, global EV sales surpassed 20 million units in 2025, with China accounting for nearly 13 million vehicles, while other emerging markets also recorded strong growth.

Analysts say Pakistan’s market remains in its early stages, where demand plays a crucial role in encouraging investment across the wider EV ecosystem, including charging infrastructure, battery manufacturing, and specialized financing.

They believe targeted incentives for electric motorcycles, rickshaws, taxis, and delivery vehicles could help accelerate adoption while reducing fuel consumption and emissions.

With the NEV policy nearing completion, experts argue that combining supply-side reforms with consumer incentives could improve the chances of meeting Pakistan’s environmental, energy security, and climate objectives while making electric mobility more accessible to the public.

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