The government is considering imposing higher taxes on imported EVs to reduce the transport sector’s growing import bill which currently stands at around $9 billion.
This was shared during a meeting of the Senate Standing Committee on Industries and Production held on Monday.
The meeting was chaired by Senator Khalida Ateeb and attended by Senators Danesh Kumar and Syed Masroor Ahsan, along with officials from the Ministry of Industries and Production and FBR.
Officials informed the committee that taxes on imported EVs are under review, while locally manufactured electric vehicles may enjoy minimal or zero taxes to encourage domestic production. Additional duties have already been imposed on imported EV parts that are now being manufactured locally.
The ministry also advised provincial governments to support EV adoption by waiving registration fees, introducing uniform number plates across the country, and charging lower toll taxes for EVs.
The committee was briefed on the current policy for establishing EV manufacturing units in Pakistan. Officials said that 17 licenses for three-wheelers and 77 licenses for two-wheelers have been issued so far.
Licenses of manufacturers that failed to export have been cancelled, and work is underway on a one-window operation in coordination with the Board of Investment.
Under the New Energy Vehicles (NEV) Policy 2025–30, Pakistan aims to shift 30% of new vehicle sales to EVs by 2030.
The government plans to distribute 2.2 million vehicles through subsidies by that time. This year alone, 116,000 motorcycles and 3,170 electric rickshaws will be provided.
Officials said Rs. 120 billion will be generated over five years through a carbon levy, which will be used to fund EV subsidies.
The policy also targets reducing emissions, improving air quality, lowering oil imports, and creating green jobs, with a long-term goal of achieving a net-zero transport fleet by 2060.