Punjab Proposes New Policy for Vehicles Older Than 20 Years

The Punjab government is planning to gradually remove vehicles older than 20 years from roads under its first-ever New Energy Vehicle (NEV) Policy, with the draft finalized for presentation to the provincial cabinet.

According to the draft policy, first reported by Urdu News, the province will introduce a phased enforcement model instead of an immediate ban. Authorities will first establish a digital vehicle age verification system before rolling out restrictions in selected urban areas, beginning with Lahore and Faisalabad.

Vehicle age will be calculated from the date of registration. The digital verification system is expected to expand across Punjab by 2027. Between 2028 and 2030, vehicles older than 20 years will face restrictions in designated low-emission zones using digital registration records, cameras, and smart license plates.

Commercial vehicles older than 20 years will then be phased out across Punjab between 2031 and 2035, while private vehicles could also be brought under the policy by 2033. The government also plans to amend the Punjab Motor Vehicles Ordinance to provide legal backing for age-based restrictions, low-emission zones, and penalties for violations.

Owners of older vehicles will be encouraged to scrap their vehicles through incentives, including rebates and financial assistance toward the purchase of new energy vehicles. Beyond the phaseout of older vehicles, the draft policy proposes a 95% reduction in registration fees, token tax, and route permit fees for new energy vehicles during the first three years of implementation.

It also includes plans to establish more than 3,000 charging stations across Punjab and gradually transition all new government vehicle purchases to electric or other approved low-emission technologies by 2030.