ISLAMABAD: The Punjab government has finalized the draft of its first New Energy Vehicle (NEV) Policy, proposing a phased removal of vehicles older than 20 years from roads across the province while offering major incentives to promote electric mobility and reduce air pollution.
According to the draft policy, vehicles more than 20 years old will first be restricted in selected urban areas before the programme is gradually expanded across Punjab. Owners of old vehicles will be encouraged to scrap them and purchase new electric vehicles through financial incentives and tax concessions.
Gradual Phase-Out of Old Vehicles
The policy proposes that a vehicle’s age will be calculated from the date of its registration. Instead of imposing an immediate province-wide ban, the government plans to introduce a phased implementation supported by digital monitoring, low-emission zones and a vehicle scrappage programme.
The first phase will begin with pilot projects in Lahore and Faisalabad, where a digital system will verify the age of registered vehicles. The system will integrate records from the Punjab Information Technology Board (PITB), the Excise Department and traffic enforcement authorities.
From 2028 to 2030, vehicles older than 20 years will gradually face restrictions in designated low-emission urban zones. Enforcement is expected through smart number plates, surveillance cameras and digital registration records.
Between 2031 and 2035, commercial vehicles older than 20 years will be phased out across Punjab, while privately owned cars may also be brought under the programme by 2033.
The policy also targets unauthorized Qingqi-style vehicles, unregulated LPG rickshaws, two-stroke motorcycles and ageing diesel-powered public transport.
Major Incentives for Electric Vehicles
To encourage the shift to cleaner transport, the policy proposes a 95 percent reduction in registration fees, token tax and route permit fees for new energy vehicles during the first three years of implementation. The concession will be reduced to 50 percent from the fourth year until 2035.
Lower-income households will receive additional support for purchasing electric motorcycles and rickshaws through subsidies and concessional financing. Eligibility is expected to be determined using data from the Benazir Income Support Programme (BISP) and the Punjab Social Protection Authority.
Electric vehicles will also receive special number plates, priority access to low-emission zones, dedicated parking facilities and possible exemptions from congestion charges.
Government Fleet to Go Electric
The draft policy sets a target of shifting 100 percent of new government vehicle purchases to electric or other approved low-emission technologies by 2030. Existing government vehicles will not be replaced immediately but will be converted gradually as they complete their operational life.
Lahore has been selected as the model city for implementing the policy, including low-emission zones, electric public transport, charging infrastructure and data-driven traffic management before expansion to other cities.
Expanding Charging Infrastructure
One of the key objectives of the policy is to address the shortage of charging facilities. According to the document, Pakistan had only around 30 public charging points and fewer than 10 operational battery-swapping stations at the beginning of 2026.
The Punjab government plans to establish 40 government-owned fast-charging stations at major motorway and highway entry and exit points. These stations may be operated by private companies under transparent agreements.
Fast chargers are proposed at intervals of approximately 80 kilometres along major highways, while urban areas will have at least one public charging facility within every five to seven square kilometres.
The policy also proposes battery-swapping stations, charging facilities at petrol pumps, shopping malls, housing societies, bus terminals, rickshaw stands and former CNG stations.
By 2035, Punjab aims to install more than 3,000 charging stations and solar-powered charging hubs across the province.
Supporting a Local EV Industry
The policy also seeks to promote a domestic electric vehicle manufacturing industry by encouraging the local assembly of electric motorcycles, rickshaws, cars, buses and trucks, along with battery production, charging equipment, software development and battery recycling facilities.
It also includes plans to provide specialized training to Rescue 1122 and other emergency responders to safely handle electric vehicle fires, battery-related incidents and road accidents involving EVs.
Tackling Air Pollution
The policy identifies transport as one of the main contributors to urban air pollution in Punjab, accounting for around 39 percent of emissions. It cites ageing diesel vehicles, two-stroke motorcycles, poor-quality fuel and weak vehicle fitness inspections as major sources of pollution.
The government believes that promoting electric mobility, strengthening emission standards and gradually removing older vehicles from the roads will help reduce smog and improve air quality in major cities, including Lahore, Faisalabad, Gujranwala and Multan.
