Pakistan expects electric vehicles (EVs) to account for 30% of new vehicle sales by 2030, potentially achieving the target ahead of schedule as fuel prices continue to rise. The government believes higher petrol and diesel costs will encourage consumers to switch to electric mobility.
Prime Minister’s Adviser on Industries and Production Haroon Akhtar said rising fuel expenses have reduced the time buyers need to recover the higher upfront cost of electric vehicles. According to him, consumers could recover the additional expense within one to one-and-a-half years.
Rising Fuel Prices Accelerate Electric Vehicle Demand
Petrol and diesel prices have increased by 54% and 43%, respectively, since the Middle East conflict began in February, according to Pakistan State Oil data. Consequently, electric vehicles are becoming more attractive to consumers seeking to reduce transportation expenses.
Moreover, petroleum imports accounted for nearly one-quarter of Pakistan’s total imports, reaching $16.9 billion in the year ending June 2026. Therefore, wider EV adoption could help reduce dependence on imported fuel and ease pressure on the country’s trade balance.
Electric motorcycle and scooter sales have tripled compared with the previous year, while electric car sales have doubled. However, comprehensive industry-wide sales figures remain unavailable.
Government Considers Incentives Under New Auto Policy
Meanwhile, the government is preparing a new automobile policy that could reach the federal cabinet within the next two weeks. Officials are considering tax incentives to narrow the price gap between electric and conventional vehicles.
However, high purchase prices and limited charging infrastructure remain significant obstacles to widespread adoption. The proposed policy also involves discussions about tariffs and export requirements.
The government hopes additional incentives will make electric vehicles more affordable while supporting local manufacturing. Nevertheless, Pakistan will need sustained investment in charging facilities and related infrastructure to accelerate the transition towards electric transportation.
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