ISLAMABAD: Pakistan's proposed auto policy for 2025-30 remains unfinalized, with the Ministry of Industry and Production set to send the draft to the Ministry of Finance, which will share it with the International Monetary Fund (IMF) for review, a parliamentary panel was told Tuesday.
Officials from the ministry briefed the Senate Standing Committee on Industries and Production, chaired by Saleem Mandwiwala, on the national industrial policy, electric vehicle production and security measures at Pakistan Steel Mills in Karachi. The committee expressed concern over the approval delay, saying the automobile sector is already feeling the effects.
Electric two- and three-wheeler output surges
The Engineering Development Board told lawmakers that local production of electric two- and three-wheelers has tripled, reaching 210,268 units in fiscal year 2025-26, up from 59,756 a year earlier. Output has climbed steadily from 7,345 units in 2021-22, 14,995 in 2022-23 and 21,551 in 2023-24, according to EDB data.
But committee members raised sharp questions about the lack of charging infrastructure and skilled workers needed to support a broader shift to electric vehicles.
Policy targets 30% NEV sales by 2030
Pakistan's New Energy Vehicle Policy 2025-30 aims for electric and hybrid models to make up 30% of new vehicle sales by 2030, with a target of 2.223 million such vehicles. The government says the transition could cut carbon emissions by 4.5 million tonnes and save about 2.07 billion liters of fuel annually, nearly $1 billion in foreign exchange.
More than 85 companies hold licenses to assemble or manufacture electric two- and three-wheelers in Pakistan, with combined local production capacity exceeding 290,000 electric motorcycles, according to the Ministry of Industries and Production.
Lawmaker: 'We are doing the opposite'
Senator Anusha Rehman criticized the sequencing of the rollout. "Globally, infrastructure is developed first, and then vehicles are manufactured. In Pakistan, we are doing the opposite," she said, noting that only one station — at Bhera on the Islamabad-Lahore motorway — had been confirmed as operational.
Rehman called for regulators to take an active role in policy formulation and urged Pakistan to adopt international practices such as China's integration of vocational training centers with EV manufacturing units. The committee said industrial regulators must require manufacturers to establish proper training infrastructure and update curricula with organizations like NAVTTC before commercial licensing.
The panel recommended sending an Auto Industry Development and Export Policy team to inspect vocational training facilities in China and incorporating local industrial input into policy adjustments to drive sustainable technology transfer and domestic manufacturing.
Charging network still undefined
An EDB official said the government aims to establish at least 3,000 charging stations nationwide and has negotiated a discounted electricity tariff of 40 rupees per unit for charging facilities. About 18 installations are under way, and 40 locations along the motorway network between Peshawar and Karachi have been identified for charging infrastructure.
However, the EDB could not provide a definitive count of operational public charging points in the country.
The tariff framework includes customs duties of 15% for non-localized completely knocked down kits, 46% for localized kits and 1% for specific EV components. Key EV components such as batteries, motors, converters and chargers carry a 1% customs duty until June 30, 2027, alongside a 1% sales tax on locally assembled two- and three-wheelers and a sales tax waiver on imported two- and three-wheeler EVs.
Steel Mills security in focus
On Pakistan Steel Mills, Senator Khalida Ateeb noted that sub-committee meetings on Sept. 7 and 22, 2026, produced 11 recommendations addressing theft, operational vulnerabilities and administrative concerns at the plant.
Following the withdrawal of Defence Security Force personnel, Pakistan Steel Mills launched a formal tendering process to hire a private firm for 120 security guards to protect PSM land, plant, machinery and stores after a proposal for an integral security force was not approved by the Ministry of Industries and Production. The tender, advertised Sept. 29 and opened Oct. 19, is in its final evaluation stage.
The committee noted that criminal cases are being pursued against individuals involved in theft and directed that comprehensive implementation reports on all 11 sub-committee directives be presented at the next meeting.
