Fuel imports: USD1bn can be saved by adding 30,000 REEVs annually, experts say
ISLAMABAD: Auto Industry experts said that Pakistan could save over USD 1 billion in fuel imports over five years by adding 30,000 range-extended electric vehicles (REEVs) annually, highlighting the potential of electric mobility to reduce household transport costs and the country’s dependence on imported petroleum.
The projected adoption would build a fleet of 150,000 vehicles by the fifth year. Industry estimates suggest this could cumulatively displace approximately 1.2 billion litres of petrol and avoid around 2.7 million tons of operational carbon emissions compared with similar petrol vehicles. Actual savings would depend on driving distances, charging patterns and the proportion of travel completed on electricity.
“With petroleum imports consuming 30 percent of Pakistan’s total import bill, the transition to EVs is a macroeconomic imperative. Accelerating EV adoption directly mitigates this fiscal vulnerability, shielding the current account balance from volatile foreign exchange drains caused by global oil shocks,” said Mohammad Shaaf Najib, Research Economist at the Pakistan Institute of Development Economics (PIDE), in Future on Wheels.
REEVs use electric motors to drive the wheels, while an on-board fuel-powered engine acts as a generator to support the battery when required. This configuration enables motorists to undertake routine journeys on electricity while retaining additional range for intercity travel.
According to industry insiders, REEV models offering approximately 150–180 kilometres of electric range could cover much of consumers’ daily travel through home charging, including rooftop solar, while providing flexibility as Pakistan’s public charging network develops.
“REEVs can offer Pakistani consumers a practical route to electric mobility by combining lower daily running costs with the confidence to undertake longer journeys. A stable policy framework, investment in charging infrastructure and progressive localisation can help translate these consumer benefits into wider economic gains for Pakistan,” said Ali Damani, Chief Operating Officer of Changan Motors Pakistan.
Some REEV owners charging largely through rooftop solar report monthly fuel savings of up to Rs 65,000. Such savings vary with vehicle usage and charging costs, but illustrate the potential relief for households managing school transport, commuting and other routine journeys.
Industry insiders estimate that increasing annual REEV additions to 60,000 could broadly double the projected fuel-displacement benefits under comparable assumptions. They argue that shifting transport demand towards domestically generated electricity could help reduce exposure to international oil-price volatility and pressure on foreign exchange reserves.
The estimates also strengthen the case for a predictable framework for new energy vehicles. Industry stakeholders have called for long-term policy stability, affordable financing, expanded charging facilities and incentives progressively linked to localisation and consumer protection.
They maintain that Pakistan’s automotive transition should encourage competition in technology, running costs and after-sales service, enabling consumers to access more efficient vehicles while supporting the country’s energy-security objectives.
Copyright Business Recorder, 2026