Islamabad, December 29, 2025: The Senate Standing Committee on Industries and Production, chaired by Senator Khalida Ateeb, met on Monday to review key matters related to electric vehicle (EV) policy and the performance of state-owned industrial entities. The meeting was attended by Senators Danesh Kumar and Syed Masroor Ahsan, along with officials from the Ministry of Industries and Production and the Federal Board of Revenue (FBR).
At the outset, the committee expressed strong displeasure over the absence of the Chairman FBR, terming it a lack of seriousness towards parliamentary oversight. Members questioned the effectiveness of deliberations in the absence of senior leadership from the revenue authority.
Officials from the Ministry of Industries and Production briefed the committee on the government’s policy framework for establishing manufacturing units for electric vehicles, particularly two-wheelers and three-wheelers. They informed the committee that so far 17 licenses have been issued for electric three-wheelers and 77 licenses for electric two-wheelers. The officials said the government aims to shift 30 percent of vehicles to electric mobility by 2030, with a target of distributing 2.2 million electric vehicles to the public through government subsidies by that year.
The committee was further told that the government plans to provide a subsidy of Rs 80,000 on electric two-wheelers and Rs 400,000 on electric three-wheelers. Currently, Pakistan has around 20 million vehicles and more than 20 million motorcycles. During the current year, 116,000 electric motorcycles and 3,170 electric rickshaws are expected to be provided to the public. Officials added that over the next five years, approximately Rs 120 billion would be generated through a carbon levy, which would be utilized to finance EV subsidies. These measures, they said, are aimed at reducing the transport sector’s import bill of about USD 9 billion.
Briefing the committee on taxation, officials stated that efforts are underway to impose taxes on imported electric vehicles, while locally manufactured EVs would face minimal or zero taxation. Additional duties have been imposed on imported EV parts that are already being manufactured locally. The Ministry of Industries and Production has also advised provincial governments not to charge registration fees on electric vehicles, introduce uniform number plates across the country, and levy lower toll charges on EVs.
The committee was also informed that work is in progress to establish a one-window operation for EV manufacturers in coordination with the Board of Investment. Officials said licenses of manufacturers who failed to export had been cancelled, stressing that no compromise would be made on compliance with policy requirements.
During the meeting, Senator Syed Masroor Ahsan raised serious concerns over a recent theft incident at Pakistan Steel Mills. He noted that despite the registration of a first information report (FIR), no concrete action had been taken and no Director of Finance had been appointed. Chairperson Senator Khalida Ateeb warned that inaction could embolden those involved and lead to an increase in such irregularities, calling for immediate corrective measures.
