THE government’s policy gymnastics following Pakistan’s unexpectedly rapid adoption of rooftop solar have invited much criticism. However, few lessons seem to have been learnt from the experience. As the country now attempts to shift away from fossil fuel engines to new energy vehicles, state policies need to incorporate thoughtful strategies to make the transition successful. There are, without a doubt, many good measures that have already been taken at the policy level to encourage the adoption of NEVs, such as reduced sales taxes and duties, subsidies and more favourable vehicle-financing deals. But the government will need to do more. It has taken the right step by prioritising electric motorbikes and rickshaws, but a mass transition cannot be achieved without taking the bigger picture into account.

In Pakistan, vehicles are often treated as assets, and there is much thought given to their resale value. The target market for e-bikes and rickshaws is also sensitive to maintenance costs, which can quickly add up to prohibitive levels for EVs if they have been made with substandard components. Therefore, the government must also ensure strict quality standards, especially with respect to battery technologies and their warranties, if it wishes for its policy to have a long-term impact. Separately, the government’s treatment of four-wheeler NEVs needs reconsideration. Most known-brand NEVs being offered in the market are priced so high that they can only be afforded by affluent buyers. By offering tax and duty incentives on such vehicles, the government only seems to be subsidising the rich. The focus should instead be on incentivising reliable manufacturers to introduce options at lower price points and providing greater subsidies on these vehicles. Lastly, the electric-charging network in Pakistan is extremely inadequate, which limits the utility of EVs for buyers. A well-thought-out strategy is needed to address this gap, or EVs will continue to seem like a gimmick to most people.

Published in Dawn, June 24th, 2025