The federal government is reportedly considering a major incentive package for electric and plug-in hybrid vehicles by removing toll taxes on motorways and national highways across Pakistan. The proposal is part of the upcoming Auto Policy 2026–31 aimed at accelerating the adoption of clean energy vehicles in the country.
According to reports, the proposed toll exemption will apply to New Energy Vehicles (NEVs), including Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and fuel-cell-powered vehicles. Officials believe the move could encourage more consumers to shift toward environmentally friendly transportation options.
The policy is also expected to introduce broader reforms in Pakistan’s auto industry. Authorities are planning to gradually phase out Additional Customs Duties (ACD) by FY2029 while reducing Regulatory Duties (RD) by nearly 80 percent by FY2030. Several long-standing SRO-based tariff protections may also be abolished under the new framework.
As part of the same green mobility initiative, the government is reportedly preparing to install ultra-fast EV charging stations along motorways and national highways. Around 40 Level-3 fast charging stations are planned at intervals of approximately 120 kilometers to support long-distance electric travel and reduce range anxiety for EV users.
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Officials are also targeting the installation of nearly 3,000 EV charging stations nationwide by 2030. Oil marketing companies may soon be required to dedicate at least 10 percent of their fuel stations to fast EV charging infrastructure under the proposed policy.
The proposed incentives arrive as Pakistan’s EV market begins gaining momentum. Several international automakers, including BYD and Dongfeng, are expanding their presence in the country with new electric and plug-in hybrid vehicle launches.
Industry experts believe toll exemptions could significantly lower operating costs for EV owners, especially frequent motorway commuters. Analysts also say the measures may help Pakistan reduce fuel imports, lower urban pollution levels, and modernize the country’s transportation infrastructure.
However, the proposals are still under review and have not yet received final approval. The government is expected to announce additional details regarding the Auto Policy 2026–31 and related EV incentives in the coming months.
