Pakistan may achieve its electric vehicle (EV) adoption target ahead of schedule as rising petrol prices make electric vehicles a more attractive choice for consumers.
The government has set a target for EVs to account for 30% of new vehicle sales by 2030. However, the recent increase in fuel prices could encourage consumers to switch to electric vehicles sooner.
Prime Minister’s Adviser on Industries and Production Haroon Akhtar told Bloomberg that higher petrol prices have shortened the time buyers need to recover an EV’s higher upfront cost.
Akhtar said consumers can now recover the extra amount spent on an electric vehicle within one to one and a half years, depending on fuel prices and how much the vehicle is used.
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According to data from Pakistan State Oil Company Ltd, petrol prices have risen by 54% and diesel prices by 43% since the Middle East conflict began in February.
The increase in fuel costs is also adding to Pakistan’s economic challenges. Petroleum products made up almost one-quarter of the country’s total imports, with the import bill reaching $16.9 billion in the year ending June 2026, according to the Pakistan Bureau of Statistics.
Rising oil prices can widen the trade deficit and put additional pressure on the rupee and inflation. This could make fuel-efficient alternatives such as electric vehicles more attractive to consumers.
However, Pakistan’s shift towards electric vehicles is expected to take time. High purchase prices and a limited charging infrastructure continue to be major obstacles to widespread EV adoption.
Despite these challenges, demand for electric transport is growing. Sales of electric motorcycles and scooters have reportedly tripled from last year, while electric car sales have doubled. However, complete industry-wide figures for EV sales are not publicly available.
The government is also preparing a new auto policy that it could place before the federal cabinet within the next two weeks.
Under the proposed policy, the government is considering tax incentives aimed at narrowing the price difference between electric vehicles and conventional cars, Akhtar said.
The policy has been under discussion for several months but has been delayed over tariff-related matters and export requirements. The draft is currently with Law Minister Azam Nazeer Tarar, who is expected to add the latest recommendations before it is moved forward.