Pakistan is preparing to launch a comprehensive set of incentives under its upcoming New Energy Vehicle (NEV) policy to encourage the use of electric and environmentally friendly transport, especially electric motorcycles and rickshaws across the country.
Under the proposed framework, owners of NEVs registered in Islamabad are expected to receive exemptions from registration charges as well as annual token taxes. The measure is designed to reduce both initial purchase expenses and long-term ownership costs for consumers in the federal capital.
The draft policy also recommends that provincial governments, along with Gilgit-Baltistan and Azad Jammu and Kashmir, introduce similar relief measures in their own regions. Officials believe nationwide adoption of such incentives could help speed up Pakistan’s transition toward cleaner and more sustainable transportation.
Another major proposal under consideration is the exemption of NEVs from toll taxes on motorways and national highways. The National Highway Authority (NHA) is expected to provide this relief to reduce travel expenses for electric vehicle users and promote the use of clean-energy transport for intercity travel.
Government authorities are mainly focusing on electric two-wheelers and three-wheelers because they are commonly used for daily commuting in urban areas. Policymakers view these vehicles as an important part of efforts to reduce fuel consumption, lower emissions, and modernize the country’s transport system.
Although electric vehicles currently remain more expensive than traditional petrol-powered vehicles, officials believe that tax exemptions, registration waivers, and toll relief will make them more affordable over time. Reduced fuel and maintenance costs are also expected to benefit consumers in the long run.
Officials further stated that the financial impact of these incentives on government revenue would likely remain limited, as most NEVs are expected to operate within cities rather than on long-distance highway routes.
While Islamabad’s implementation plan has been included in the draft policy, the expansion of similar incentives nationwide will depend on whether provincial administrations decide to adopt the federal government’s proposed framework.
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