Pakistan's shift towards electric vehicles (EVs) is progressing slowly amid limited charging infrastructure, even as the government seeks to reduce the country's fuel import bill and consumers face higher petrol and diesel prices.

Prime Minister Shehbaz Sharif has called for EVs to account for 30% of vehicles within five years, with the aim of saving US$ 4.5 billion annually on fuel imports, but the availability of charging stations and supporting infrastructure remains a constraint.

Oil marketing companies (OMCs) continue to expand their retail fuel networks, while investment in EV charging facilities remains comparatively limited. Financial statements from OMCs indicate continued growth in retail outlets alongside limited expansion of charging infrastructure. Amid rising petrol and diesel prices following the Middle East crisis that began on February 28th, consumers are shifting towards electrified vehicles, including hybrid electric vehicles (HEVs), range-extended electric vehicles (REEVs) and battery EVs.

Wafi Energy Pakistan Ltd (WEPL), in its half-year results to June 30th, reported adding 38 new Shell retail sites, 18 Select stores and two EV recharge facilities, while upgrading eight existing sites. It also inaugurated a 7.4-million-litre motor gasoline storage tank at its Tarru Jabba terminal in Nowshera, Khyber Pakhtunkhwa, and plans to further expand its Shell retail network across northern Pakistan.

Pakistan State Oil (PSO), in its 9MFY26 report, said it had deployed nine EV charging stations along the Karachi-to-Peshawar corridor. In its 1HFY26 report, it said its retail network had grown to 3,638 outlets nationwide after adding 107 outlets in FY25.

Attock Petroleum Ltd (APL), in the nine months to March 31st, commissioned 33 new outlets, taking its network to 811. It is also expanding EV charging and on-grid solar installations at selected outlets and terminals, while progressing DC fast-charging infrastructure with Hubco Green and Huawei.

The pace of EV adoption is also affected by the continued reliance on petrol-powered two-wheelers. Industry stakeholders expect petrol demand to remain high because 60-65% of two-wheelers run on petrol, while assembly of such vehicles continues to increase despite higher prices. Pakistan assembled 2.416 million two-wheelers in FY26, up from 1.692 million in FY25.

"EVs will penetrate slowly and may replace petrol in the next five to six years," a refinery official said, adding that demand reduction in the four-wheeler segment remains marginal.

An oil industry executive said about 70% of petrol, or 5.5 million tons, is imported annually, while local production stands at 2.5 million tons.

The executive noted that, globally, EV charging stations are commonly located near shopping malls and residential areas, while many vehicle owners use home chargers. In Pakistan, however, the government is encouraging OMCs to install chargers at fuel stations. EV charging takes longer than conventional refuelling, while fast chargers at fuel stations require high-capacity transformers, increasing costs because of higher power consumption.

"Hybrid vehicles are a better option than pure battery vehicles under current circumstances," the executive said.

There are 4.5 million petrol-driven vehicles, including decades-old models, still operating on Pakistani roads, further adding to the existing reliance on conventional fuels. The slow transition to EVs is occurring alongside efforts to reduce fuel imports through other measures. The government is considering several options, with the latest proposal involving the modernisation of refineries at an estimated cost of US$ 6 billion. The country requires refinery modernisation to replace ageing plants and maintain competitiveness, while upgradation could increase annual petrol and diesel production by one million tons and is considered important for energy security.

All five refineries have informed Petroleum Minister Ali Pervaiz Malik that they are ready to sign modernisation agreements to begin producing Euro-5-compliant fuel locally. The agreements are intended to reduce petrol and diesel import bills and prices, improve product quality and efficiency, strengthen domestic supply resilience and support energy security objectives. The agreement with the government is likely to be signed next month.

Earlier efforts to reduce petrol imports through CNG also faced supply constraints. Successive governments had promoted compressed natural gas (CNG) for automobiles to reduce petrol imports, but the plan could not be fully implemented because of gas shortages. This resulted in losses for CNG station investors and car owners who had purchased expensive cylinders and conversion kits.