Pakistan's transport sector contributes approximately 10% to GDP and supports around 6% of national employment, making it a key economic contributor. The sector is undergoing a visible, even if early-stage, transition. Electric two-wheeler sales surged by 191% in 2025, driven by increasing petroleum product prices, declining costs of two-wheelers, growing private sector investment, and a strengthening policy framework. The New Energy Vehicle (NEV) Policy 2025-30 targets a 30% share of EVs in total new vehicle sales by 2030, with 50% of new two- and three-wheeler sales to be electric by the same year. These targets are also reinforced by Pakistan's NDC 3.0 commitments, which identify transport electrification as a priority mitigation lever, alongside emission control measures including the transition to Euro-5 fuel standards and the expansion of mass transit systems in major urban centres.
Yet the transition faces structural constraints. The transport sector still relies heavily on high-cost imported fossil fuels, while the dominance of IC vehicles continues to drive urban air quality challenges across major cities. Charging infrastructure remains underdeveloped, access to consumer financing for EV adoption is limited, and public transport investment continues to lag behind the pace of urban growth. Addressing these gaps, through coordinated investment, regulatory reform, and sustained fiscal support, will determine whether Pakistan's transport transition moves from early momentum to systemic change.
