Brussels, (Unib Rashid): Pakistan’s first fully locally developed electric vehicle (EV) is expected to hit the roads by June or July this year with a projected price tag of under Rs1 million, as the government considers significant tax reductions on locally assembled vehicles in the upcoming federal budget.

The announcement was made by Hamad Ali Mansoor, Chief Executive Officer of the Engineering Development Board (EDB), while speaking at an Iftar dinner hosted by Mashood Khan, Director of the Small and Medium Enterprises Development Authority (SMEDA), at a local hotel in Karachi.

Mansoor said the launch would mark a milestone for Pakistan’s auto industry, as it would be the first time a fully home-grown electric vehicle rolls off domestic production lines. The manufacturing facility for the vehicle has been established in Lahore.

According to Mansoor, the EV will offer a driving range of up to 180 kilometres on a single charge, making it a practical option for daily commuting. The affordable price point is also aimed at encouraging two-wheeler owners to transition to four-wheeled vehicles.

He also revealed that the government is considering major tax cuts on locally assembled vehicles in the next federal budget in an effort to make cars more affordable and stimulate growth in the domestic auto sector.

Mansoor noted that the long-standing dominance of major automobile manufacturers in Pakistan is gradually coming to an end, adding that two to three additional companies have already expressed interest in manufacturing electric vehicles in the country.

Under the upcoming Auto Policy, the Prime Minister has pledged full support for the local auto industry, signalling a broader shift toward industrial self-reliance and domestic manufacturing.

The government is also planning to promote exports of “Made in Pakistan” vehicles to international markets. For this purpose, Rs100 billion has been allocated as export incentives.

Mansoor added that the Prime Minister has also proposed a subsidy programme to make electric bikes and e-rickshaws more affordable across the country, further supporting Pakistan’s transition toward electric mobility.

Speaking on the occasion, SMEDA Director Mashood Khan said Pakistan’s economic future largely depends on the growth of Small and Medium Enterprises (SMEs), which are increasingly being driven by young and innovative entrepreneurs.

He noted that SMEs currently employ nearly 25 million people and contribute around Rs2.8 billion in exports, making them one of the most dynamic segments of the country’s economy.

Mashood emphasised that with consistent policies, improved access to financing and stronger export facilitation, Pakistan’s SMEs have the potential to emerge as global competitors, helping drive employment, economic growth and long-term stability.