Pakistan’s plan to switch to electric vehicles faces serious hurdles that could slow progress, according to the State Bank of Pakistan. In its latest Half-Year Economic Report, the central bank said financing problems, weak charging networks, and poor coordination may stop the country from reaching its long-term goals.
The National New Energy Vehicle (NEV) Policy 2025-30 aims to make electric vehicles 30% of all new car sales by 2030. This could cut the country’s large oil import bill, which averages $15.8 billion a year, and reduce pollution from transport, which causes nearly 10 percent of carbon emissions.
Some early signs look positive. Local assembly of electric four-wheelers rose to 137 units in the first half of the current fiscal year. Overall car production and sales also grew strongly. The policy offers subsidies for electric bikes and rickshaws, lower taxes on electric cars, and plans for 3,000 public charging stations by 2030.
However, the State Bank points out big risks. The main funding for subsidies comes from a small tax on regular petrol and diesel cars. If sales of those cars fall, the money for electric vehicle support could dry up quickly. Charging stations also struggle because few electric cars are on the roads yet, so private companies see low profits. The bank suggests the government should lead in building chargers in cities, as done in places like Brazil and Indonesia.
Frequent policy changes and debates over hybrid vehicles add more uncertainty for investors. Without steady funding and better teamwork between departments, the shift to cleaner transport may take longer than hoped.