With the official release of the latest details of the New Energy Vehicle Policy (NEV Policy 2025-2030) at the end of August, Pakistan has taken a crucial step toward widespread adoption of electric vehicles. This policy aims to facilitate the green transition of the country’s transportation system by enabling more citizens to afford electric vehicles through financial support, loan installments, and institutional innovations.

According to policy documents and media reports (Propakistani), the Pakistani government plans to launch the first phase of subsidy distribution in FY 2025-26. The initial allocation will provide purchase subsidies for 40,000 electric motorcycles, 1,000 electric tricycles, and 1,000 electric cars. The subsidy amounts are as follows: approximately 20,000 Pakistani rupees for electric motorcycles, 80,000 Pakistani rupees for tricycles, and 290,000 Pakistani rupees for four-wheeled electric vehicles. The application window is expected to close by the end of September 2025.

To alleviate financial burdens for buyers, the policy incorporates flexible financing options. According to Pakistan’s National Authority for Transmission and Power (NATPOW), electric motorcycles qualify for a maximum subsidy of 80,000 rupees and loans up to 200,000 rupees, typically repayable over two to three years. Loans for electric tricycles and small cargo vehicles are higher, with subsidies capped at 400,000 rupees. This initiative specifically targets low-income households, rural residents, and students—groups facing high transportation costs and inadequate public transit services—reflecting the government’s policy orientation toward social equity and inclusive mobility.

This new energy vehicle subsidy policy signals Pakistan’s electric vehicle market entering an accelerated development phase. From electric motorcycles to tricycles and electric cars, this South Asian nation has chosen to advance its green transportation transition by prioritizing mass-market models with broad application scenarios. Successful implementation of these policies will not only reduce citizens’ transportation costs but also propel Pakistan toward significant strides in energy conservation, emissions reduction, industrial upgrading, and social equity.