About 40% of Pakistan’s gasoline is used to fuel the 30 million two- and three-wheeled rickshaws
Mehwish Qureshi, 33, a lawyer, rides his electric motorcycle in Hyderabad, Pakistan April 2, 2026. PHOTO: REUTERS
Days after Iran effectively blocked shipping through the Strait of Hormuz following the start of US and Israeli strikes in late February, two Pakistani electric motorcycle dealerships 1,400km away were overwhelmed with enquiries.
Haseeb Bhatti, who retrofits petrol-powered bikes with battery-powered motors in the northern city of Rawalpindi, said his sales in March were up 70%. For Ali Gohar Khan, who owns a 7-year-old electric motorcycle retail franchise with branches across Pakistan, the latest increase in sales is the steepest ever.
“People have this fear that in the near future they might not get gas at all,” Khan said.
The Middle East crisis has sent global fuel prices soaring, exacerbating the pain for Pakistanis already reeling from inflation and a post-pandemic economic downturn. As the nation imports almost all of its oil through the Strait of Hormuz, rumors of shortages took hold despite government supply assurances.
Read: UNSC to vote on Iran-Hormuz resolution amid Trump’s ultimatum
About 40% of Pakistan’s petrol is used to fuel the 30 million two- and three-wheeled autorickshaws that dominate the roads in a country where cars are a luxury and public transport is inadequate.
Industry officials and analysts expect the crisis to exaggerate an EV rush in Pakistan, which would stand out from a broader regional surge for the availability of cheap and abundant solar power to charge e-bikes. A switch would also help lower oil imports and strengthen foreign exchange reserves and reduce emissions in the world’s most polluted country by 2025.
Following the government’s 18% price hike last week, a Pakistani household earning the median wage now pays 31% of its daily income for a liter of petrol – more than all but 22 of 139 countries tracked by globalpetrolprices.com and Our World in Data.
“My monthly salary is Rs 30,000. I can barely cover the expenses of my family of six with this. How will I fill my bike?” said Zahoor Ahmed, a security guard in the southern city of Karachi.
From professional professionals to college students, more riders have turned to electric cars in recent months. Last year, higher petrol prices drove up sales of electric cars almost threefold to 90,000 units, or 5% of all two-wheelers sold, data from consultancy Renewables First showed.
This year, EVs have accounted for more than 10% of monthly two-wheeler sales for the first time, said Talha Khan, CEO of EV logistics planning firm Orko, a transition he expects to accelerate as refueling with conventional fuel can be as much as 10 times more expensive than recharging.
“Keeping inflation and fuel prices in mind, I took matters into my own hands and bought an electric scooter,” said Mehvish Qureshi, a lawyer in south Hyderabad.
Generous grants and interest-free loans
A typical electric two-wheeler costs around Rs 250,000. – more than half of the annual income per per capita for Pakistanis and 56% more than the popular petrol powered Honda CD 70 which costs around Rs 160,000.
In February, the government’s Pakistan Accelerated Vehicle Electrification (PAVE) plan came into effect, providing subsidies for a fifth of the cost and interest-free loans for the rest. The plan is aimed at electric bikes and autorickshaws.
It has already received about 270,000 applications – nearly seven times PAVE’s first phase target, which ends in June – Finance Ministry adviser Adnan Pasha told Reutersand added that the government aimed to fund 2 million electric cars over five years and fund the plan with existing taxes on fuel sales.
Read more: Fuel price reduction likely if the situation in the Gulf eases
“Electrifying just 2 million vehicles could result in nearly half a billion dollars in annual savings since we don’t have to import that fuel,” Pasha said.
Many Pakistanis turned to solar after IMF-driven power tariff hikes in 2023, buying cheap Chinese-made panels for their homes. Now the government aims to capitalize on this boom to drive the growth of electric cars.
“Using solar energy can reduce electricity costs at charging stations and make charging at home more affordable,” Pasha said.
Ammar Habib, adviser to Pakistan’s energy minister, said electric cars were also “good for the grid, as the steady demand from electric vehicle charging will ease some of the daytime volatility associated with solar oversupply.”
Chinese players at heart of EV shift
Like its solar revolution, Pakistan’s embrace of electric two-wheelers is built on Chinese brands. Scooter manufacturers such as Yadea and Jinpeng and e-bikes assembled locally with batteries and components from firms including AIMA and Sunra are expected to meet the growing demand.
Chinese EV giant BYD, which has partnered with Pakistan’s HUBCO Green to build charging stations across the country, said it plans to support wider electrification to eventually sell more passenger cars.
Pasha said the government wants local companies to build charging stations and said he expected the 45% cut in charging stations’ electricity prices last year to continue to boost adoption.
But economic incentives could come under pressure if the war drags on, while a lack of local expertise and difficult-to-scale charging infrastructure are other risks to Pakistan’s EV transition, said Ahtasam Ahmad, head of energy finance at Renewables First.
Good service networks are critical as EVs are more sensitive to potholes, which are common on South Asian roads. In neighboring India, driving e-scooters on poorly maintained roads has caused large service backlogs.
“When Chinese players flood the market, it may look promising on paper, but with virtually no after-sales service infrastructure, they risk eroding consumer confidence in the technology,” Ahmad said.
