IMF Backs Rs 100 Billion Subsidy for Electric Vehicles in Pakistan

The IMF has endorsed the government’s policy of Rs 100 billion subsidy for the promotion of electric vehicles from 2025–30. The new electric vehicle policy for five years aims to reduce carbon emissions, cut fuel imports, and promote local manufacturing of electric vehicles (EVs).

To promote EVs’ adoption, the government has allocated Rs nine billion in subsidies for the fiscal year 2025–26. Under the EV policy, Rs 50,000 subsidy will be given to each two-wheeler or three-wheeler, as per sources at the Ministry of Industries and Production.

This funding is expected to deliver over 116,000 electric bikes and more than 3,000 electric rickshaws in two years. Notably, 25% of the subsidy has been reserved for women to support affordable and eco-friendly mobility options for them.

One of the major goals of the policy is to ensure that 30% of new vehicles by 2030 are electric. According to documents, the previous EV policy fell short of targets, with only 50,000 two or three-wheelers in the market and 200 electric buses instead of the target of 1,000.

Infrastructure upgrades are also part of the policy, including installing 40 electric charging stations along motorways. New building codes will require EV charging points, and battery-swapping systems will be introduced for ease of use in urban areas.

The government has allocated 19 billion rupees subsidy for the year 2027, 24.16 billion for 2028, 26.62 billion for 2029, and 22.64 billion for 2030, as per sources. The prime minister will announce the enforcement of the new policy from August 14.

According to the source: ARY News.