The directive by Prime Minister Shehbaz Sharif to expedite finalisation of National Electric Vehicles (NEV) Policy 2025 is a welcome step in the right direction.
At a time when Pakistan faces a multitude of challenges ranging from deteriorating air quality to a heavy reliance on imported petroleum products, transitioning to electric vehicles is not just an environmental imperative but also an economic necessity.
The NEV policy, currently under review, envisions targeted subsidies for electric motorcycles and rickshaws with an overall subsidy allocation of Rs 4 billion.
This focus on two-and three-wheelers is crucial.
These vehicles form the backbone of mobility and providing incentives to adopt this new mode will make it easier for public, especially the working and lower-middle class, to transition away from fossil fuel-based transport.
Reducing the upfront cost through subsidies is the most direct way to make EVs competitive and accessible, thus spurring widespread adoption.
The real game-changer lies in building and enhancing local manufacturing capacity for electric two and three-wheelers.
This approach will not only reduce costs over time but also pro-mote industrial growth and generate employment for our youth.
A thriving local EV manufacturing sector can place Pakistan on the regional map as a competitive player in green technology.
Another area requiring urgent attention is the pricing and financing of electric cars.
As it stands, electric cars remain largely unaffordable for the middle class.
There is a pressing need to make EVs financially accessible through soft loans and innovative financing options.
Making EVs affordable will have a twofold benefit, it will significantly reduce air pollution and help cut down on country’s massive petroleum import bill — thus improving our balance of payments and national energy security.
While the policy framework sounds promising on paper, its real value lies in implementation.
We have seen many well-intentioned policies fail to materialise.
One can only hope that this time, the policy will be implemented in letter and in spirit, backed by political will and stakeholder cooperation.
