ISLAMABAD: In order to reduce carbon emissions, the government has begun consultations for the New Energy Vehicle (NEV) Policy 2025–2030, which aims to transform the nation’s transportation industry.
In this context, the automakers attended a conference on Monday at the Ministry of Industries, where it was made clear that the policy would prioritize lowering carbon emissions, encouraging domestic NEV production, and reducing dependency on imported fossil fuels.
Tax exemptions, lower import taxes on NEV parts, and green financing options for businesses engaging in eco-friendly technology were among the incentives to increase NEV manufacturing that were covered at the meeting.
However, according to industry sources, automakers were worried that the NEV policy’s incentives would only help the top 10–20% of car buyers because NEVs are more expensive than ICE and hybrid cars.
The policy, which was created by the Ministry of Industries and Production’s Engineering Development Board (EDB), offers a thorough framework for promoting green technology and the adoption of low-emission, sustainable automobiles across the country.
Industry insiders claim that a program full of incentives will only help 20% of auto buyers.
The goal of the proposed policy was to have a zero-emission road fleet by 2060, highlighting the urgent need to reduce carbon emissions given that Pakistan’s transportation industry now accounts for approximately 30% of the nation’s greenhouse gas output.
According to the policy, vehicle charging infrastructure needed to be established throughout Pakistan in order to hasten the adoption of NEVs.
Major highways and public spaces will have charging stations constructed, and Oil Marketing Companies must install Level 3 charging stations 10% of their locations.
Private businesses who build charging stations will be eligible for reduced land prices for a ten-year lease, income tax deductions, and subsidized power rates.
The NEV policy’s emphasis on environmental conservation is one of its most important features.
By establishing safety and recycling guidelines for NEV batteries and parts, it advances a circular economy. Businesses will be incentivized to invest in battery recycling, and recycling facilities will be set up all across the country.
A number of objectives and initiatives to help the relevant manufacturing and related industries are included in the draft NEV Policy 2025-30.
The financial advantages include sales tax exemptions for locally produced components and a reduction in customs duties to 1 percent on NEV parts and 10 percent on full NEV imports until 2027.
Customs tax reductions will also be used as an incentive for big commercial vehicles until local production rises.
