About 40% of Pakistan’s gasoline is used to power the 30 million two- and three-wheeled vehicles.
Mehwish Qureshi, a 33-year-old human rights defender, rides her 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 attacks in late February, two Pakistani electric motorcycle sales outlets 1,400 kilometers (875 miles) away were overwhelmed with inquiries.
Haseeb Bhatti, who retrofits gasoline bikes with battery motors in the northern city of Rawalpindi, said his March sales were up 70%. For Ali Gohar Khan, who has owned an electric motorcycle retail franchise for seven years with branches across Pakistan, the recent increase in sales is the steepest in history.
“People are afraid that maybe in the near future they won’t get gas at all,” Khan said.
The Middle East crisis has sent global fuel prices soaring, compounding the pain of Pakistanis already hit by inflation and the post-pandemic economic recession. With the country importing almost all of its oil through the Strait of Hormuz, rumors of shortages took hold despite government supply guarantees.
Read: UN Security Council to vote on Iran-Hormuz resolution amid Trump ultimatum
About 40% of Pakistan’s gasoline is used to fuel the 30 million two- and three-wheeled vehicles 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 fuel an electric vehicle rush in Pakistan, set apart from a broader regional surge by the availability of cheap and abundant solar energy to charge electric bikes. A change would also help reduce oil imports and increase foreign exchange reserves, and would reduce emissions in the world’s most polluted country by 2025.
After the government’s 18% price increase last week, a Pakistani household earning the median wage now pays 31% of its daily income for a liter of gasoline, more than all but 22 of the 139 countries tracked by globalpetrolprices.com and Our World in Data.
“My monthly salary is Rs 30,000. With this I can barely cover the expenses of my family of six. How am I supposed to fill my bicycle?” said Zahoor Ahmed, a security guard in the southern city of Karachi.
From working professionals to university students, more and more users have turned to electric vehicles in recent months. Last year, higher gas prices boosted electric vehicle sales almost threefold to 90,000 units or 5% of all two-wheelers sold, data from consultancy Renewables First showed.
This year, electric vehicles have accounted for more than 10% of monthly two-wheeler sales for the first time, said Talha Khan, CEO of electric vehicle logistics planning company Orko, a transition he hopes to accelerate, as refueling with conventional fuel can be up to 10 times more expensive than charging it.
“Considering inflation and fuel prices, I took matters into my own hands and bought an electric scooter,” said Mehvish Qureshi, a lawyer from south Hyderabad.
Generous grants and interest-free loans
A typical electric two-wheeler costs around Rs 250,000, more than half of Pakistanis’ annual per capita income 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) scheme came into effect, providing a subsidy for one-fifth of the price and interest-free loans for the rest. The plan focuses on e-bikes and autorickshaws.
It has already received around 270,000 applications, almost seven times the target of the first phase of PAVE that ends in June, Finance Ministry adviser Adnan Pasha said. Reutersadding that the government aimed to finance 2 million electric vehicles over five years and finance the plan with existing taxes on fuel sales.
Read more: Fuel price relief likely if situation in Gulf calms down
“Electrifying just 2 million vehicles could mean annual savings of almost $500 million, since we don’t have to import that fuel,” Pasha said.
Many Pakistanis turned to solar energy after IMF-led electricity rate increases in 2023, purchasing cheap Chinese-made panels for their homes. Now the government intends to capitalize on that boom to boost the growth of electric vehicles.
“Using solar energy can reduce electricity costs at charging stations and make charging at home more affordable,” Pasha said.
Ammar Habib, an adviser to Pakistan’s energy minister, said EVs were also “great for the grid, as steady demand for EV charging will alleviate some of the daytime volatility related to solar oversupply.”
Chinese players at the center of the shift to electric vehicles
Like its solar revolution, Pakistan’s adoption of electric two-wheelers relies on Chinese brands. Scooter makers such as Yadea and Jinpeng, and locally assembled e-bikes using batteries and components from companies such as AIMA and Sunra, are expected to meet the growing demand.
Chinese electric vehicle giant BYD, which has partnered with Pakistan’s HUBCO Green to build charging stations across the country, said it plans to support broader electrification to eventually sell more passenger cars.
Pasha said the government wants local companies to build charging stations and said he hoped the 45% cut in charging station electricity rates last year would continue to drive adoption.
However, financial 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, energy finance leader at Renewables First.
Good service networks are essential as electric vehicles are more sensitive to potholes, which are common on South Asian roads. In neighboring India, riding electric scooters on poor roads has caused significant delays in services.
“When Chinese players flood the market, it may look promising on paper, but with virtually no after-sales service infrastructure, they risk eroding consumer trust in the technology,” Ahmad said.
