Prime Minister Shehbaz Sharif is set to launch a new five-year electric vehicle (EV) policy on August 14, with support from the International Monetary Fund (IMF). The policy is designed to promote the use of electric bikes and rickshaws as part of the transition towards energy-efficient transportation.
According to media reports, The new policy, developed in collaboration with the IMF, will run until 2030. The Fund has agreed to provide a total of Rs 100 billion subsidy package.Â
Out of the total, Rs 9 billion has been allocated for the ongoing fiscal year 2025-26. The government will allocate additional funds under the new policy, with projections of Rs. 19 billion in FY27, Rs. 24.16 billion in FY28, Rs. 26.62 billion in FY29, and Rs. 22.64 billion in FY30.
It seeks to address the shortcomings of the previous EV policy, which failed to meet its ambitious targets. Under the previous policy, only 50,000 two- and three-wheelers were introduced, far below the goal of 500,000.Â
Similarly, just 200 electric buses entered service, against a target of 1,000, and only 3,000 four-wheelers and 1,000 trucks were introduced, compared to a target of 100,000.
The new initiative aims to distribute 116,000 electric bikes over the next two years, with each bike and rickshaw receiving a subsidy of approximately Rs50,000.
Prime Minister Shehbaz Sharif is expected to announce the official launch of the policy and the distribution of electric bikes on August 14, marking a step toward greener and more sustainable transport solutions in Pakistan.
