Pakistan could save more than $1 billion in gross fuel imports over five years by adding around 30,000 range-extended electric vehicles (REEVs) to the road each year, according to industry analysts.
The scenario would result in a fleet of 150,000 vehicles. Compared with similar petrol-powered vehicles, the fleet could replace around 1.2 billion liters of petrol and avoid about 2.7 million tons of operational carbon emissions over the period.
The actual savings would depend on factors including vehicle mileage, the source of electricity used for charging and how often the vehicles operate on electric power.
The broader economic case for electric vehicles has also been highlighted in Future on Wheels, a policy viewpoint published by the Pakistan Institute of Development Economics (PIDE) in December 2024. The paper was authored by Dr. Usman Qadir, Mohammad Shaaf Najib and Saddam Hussein.
The paper noted that petroleum imports account for a significant share of Pakistan’s import bill and argued that greater EV adoption could reduce the country’s exposure to fluctuations in international oil prices and foreign exchange pressures.
Industry sources said REEVs could provide an intermediate option while Pakistan’s charging infrastructure develops.
REEVs use an electric motor to drive the vehicle, while a fuel-powered onboard generator produces electricity when additional battery power is needed. Some current models can travel around 150 to 180 kilometers on battery power under suitable conditions.
This means many daily trips can potentially be covered through home charging, while the onboard generator provides additional range for longer journeys.
Some users who charge mainly through rooftop solar have reported monthly savings of up to Rs65,000 after shifting regular travel from petrol to electricity. Actual savings vary depending on mileage, electricity costs and charging patterns.
Industry sources also said Pakistan Customs has classified qualifying REEVs under the tariff category covering vehicles propelled solely by an electric motor. The classification followed hearings, technical reviews, industry consultations and engagement with the World Customs Organization, according to the sources.
They said the applicable concessions should be viewed in the context of fuel savings and energy security rather than solely as support for manufacturers.
Electric vehicles are also expanding into lower price segments. Smaller models, including the recently introduced Chery Q, are available in the roughly Rs4 million to Rs5.5 million range, while several electric motorcycles are priced below Rs300,000.
Analysts estimate that raising annual REEV additions to 60,000 could roughly double the projected fuel-saving and emissions benefits, assuming similar operating conditions.
They have called for a stable auto policy covering at least 10 years, along with affordable financing and wider charging infrastructure. They also recommended gradually linking incentives to local production, manufacturing scale and consumer protection.
Industry sources said manufacturers should compete on vehicle quality, running costs and after-sales service, while government policy should focus on reducing Pakistan’s dependence on imported fuel.
