Cabinet approves Electric Vehicle policy for four wheelers

Electric Vehicles will provide people cheaper transport facilities and pollution-free solutions, government says

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Photo: AFP
  • The Federal Cabinet approves a new Electric Vehicle (EV) policy for Pakistan
  • Minister Hammad Azhar shares the salient features of the new Electric Vehicle policy on Twitter
  • The policy outlines rules for import and export, taxation, customs duties, and registration of EV vehicles


The Federal Cabinet of Pakistan on Tuesday announced the Electric Vehicle (EV) policy for four-wheelers, outlining several new rules related to import and export of vehicles, taxation, registration, and customs duty, among others. 

Relevant read: PTI-led government plans to convert CNG stations into EV charging terminals: report

The Federal Minister for Industries and Production Hammad Azhar took to Twitter and shared the salient features of the new policy with the public. 

Salient features of the Electric Vehicle Policy 

As per the new policy, the following rules will apply to all electric-run four-wheelers in Pakistan.

  • Removal of additional customs duty and Additional Sales Tax (AST) on the import of EV cars;
  • Only 1% tax on the import of EV parts for manufacturers;
  • Registration and annual renewal fee waiver for EVs in the ICT sector;
  • 1% sales tax for locally made EVs up to 50kwh and light commercial vehicles up to 150 kwh;
  • Duty on import of charging equipment capped at 1%;
  • Federal Excise Duty (FED) already does not apply to EVs; and
  • Duty-free import of plant and machinery for manufacturing of EVs.

Read more: Islamabad gets first electric vehicle charging station

'Important step for Pakistan's future'

A few days ago, the Special Assistant to the Prime Minister on Climate Change Malik Amin Aslam had said that the PTI-led government would be introducing a public-friendly transport system under a new Electric Vehicle (EV) policy. 

Speaking to a private news channel, the Aslam had said that the masses would be able to avail cheaper transport facilities under the new policy.

"The PTI government is promoting EVs in the country, both in terms of manufacturing and adoption," he said.

"The introduction of the EVs in the country will be an important step for Pakistan’s future when it comes to a pollution-free environment and reduced vehicle prices," he said.