Pakistan: are electric cars a luxury or a tax mistake?

In Pakistan, electric cars remain a product for a few: high purchase prices, limited charging infrastructure and a fragile power grid are slowing adoption. The debate also involves the International Monetary Fund, which is pushing fiscal measures that can boost state revenues.

The issue is both political and industrial: taxing EVs too heavily could slow an already sluggish transition, but giving up the revenue also hurts public finances. For consumers, the electric car risks staying a premium product rather than an affordable mass-market solution.