With the National Electric Vehicle Policy (NEVP) 2025–2030 on the horizon, stakeholders in Pakistan’s EV automotive and broader automobile industries are actively voicing their opinions—both in support and concern—regarding this critical policy. At the centre of the debate is the proposed incentivised 25% customs duty on EV imports until 2027, which is set to rise to 50% thereafter, alongside a nominal 10% sales tax.

Local manufacturers and assemblers, who have invested in setting up plants in line with the government’s objective of fostering EV assembly in Pakistan, argue that such generous tax breaks disproportionately favour imports, rendering their businesses uncompetitive. While this perspective has merit within the narrow scope of local EV manufacturing, it misses the broader picture that Pakistan’s policymakers must prioritise. Pakistan remains in the nascent stages of its transition to EVs. These vehicles are predominantly limited to a few urban centres, where the necessary infrastructure—such as charging stations and maintenance facilities—remains grossly inadequate. The primary challenge is not competition between local and imported EVs but kickstarting an EV ecosystem across the country. If cheaper imports enable wider adoption of EVs, it’s a step in the right direction. If local manufacturers subsequently step in to fill market gaps and introduce competition, it’s even better. The ultimate goal is to foster an environment where technology transfer, local innovation, and the development of homegrown EV brands become a natural progression.

This initial push is crucial for building the foundational systems required to sustain a large-scale EV fleet—charging infrastructure, battery manufacturing plants, and refurbishment facilities. Policymakers must focus on the long-term benefits. Two major issues plague Pakistan: the winter smog that chokes the northern half of the country and an unsustainable trade deficit driven largely by imported fuel to power the nation’s conventional vehicle fleet.

A well-crafted EV policy addresses both problems. By reducing reliance on fossil fuels, Pakistan can significantly cut down its import bill while also mitigating the environmental and health impacts of vehicular emissions. In this context, any tax break or policy incentive that accelerates EV adoption is not just beneficial but imperative.