The federal government of Pakistan is likely to announce free registration of the New Energy Vehicle (NEV) in Islamabad.
The government can make this decision following the amendments made in the New Energy Vehicle policy.
The proposal includes free vehicle registration in Islamabad, exemption from annual token taxes and toll-free travel on motorways and national highways.
The amendments made in the policy will lead towards the reduction in the cost of owning and operating cleaner transport options, particularly electric two-wheelers and three-wheelers.
Under the proposed policy, NEVs registered in Islamabad would not be charged registration fees or annual token taxes.
The federal government is also encouraging provincial administrations, as well as authorities in Gilgit-Baltistan and Azad Jammu and Kashmir, to introduce similar exemptions for electric and other clean-energy vehicles.
Another major proposal would allow NEVs to travel toll-free on motorways and national highways managed by the National Highway Authority.
The authorities said that the measures are intended to make electric mobility more financially attractive at a time when many consumers remain concerned about the higher upfront cost of electric vehicles compared with conventional petrol-powered alternatives.
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According to the media reports, the lower registration costs, tax exemptions and reduced travel expenses could significantly improve long-term affordability for buyers, particularly for commuters using electric motorcycles and rickshaws in urban areas.
The policy places particular emphasis on increasing the use of electric two-wheelers and three-wheelers, which are seen as more practical and affordable for large-scale adoption in Pakistani cities.
According to policy estimates, the financial impact of the proposed exemptions on government revenue is expected to remain limited because most electric two and three-wheelers are primarily used for intra-city travel rather than frequent motorway journeys.
Pakistan has been exploring ways to expand its electric vehicle sector in recent years as authorities seek to reduce fuel imports, cut urban air pollution and lower carbon emissions.
However, challenges including charging infrastructure, battery costs and consumer awareness continue to affect the pace of adoption.
Also read: EV, PHEV cars to get major relief on toll tax on highways, motorways
