ISLAMABAD – The Ministry of Industries and Production (MoI&P) has decidedto formulate Pakistan’s first-ever Electric Vehicles (EV) policy for cars,motorcycles, and rickshaws, etc, reported a local English newspaperlink.
Most countries have announced ambitious plans for electric vehicles (EV) toreduce their reliance on fossil fuels for the sake of the environment.
The government has started working on EVs after Prime Minister Imran Khandirected the authorities to ensure the conversion of 30% of all carsrunning in the country to electric vehicles by 2030.Objectives
However, for Pakistan, the objective of the EV policy is as follows:
1. Mitigate climate change through a reduction in emissions from the transport sector. 2. Encourage auto and related industries to move towards local EV manufacturing. 3. Forge links with the global value chain for the export potential of EVs and their parts. 4. Employment generation through green economy initiatives. 5. Reduction in oil import bill. 6. Use of electricity in off-peak times for useful purposes. 7. Develop an affiliated industry as battery manufacturing, charging infrastructure, etc.
Initial Draft
According to the initial draft, the provincial governments will be asked tomake the registration of EV license plates and the acquiring process easierfor the local manufacturers.
Work on lowering the EV cost of raw material (imported /local) bysubsidizing the category e.g. batteries, solar, so the local industry canbe developed and can become independent.
The federal government needs to play its part by lowering the Custom Dutyimposed on the raw material and components and restrict the finishedproducts imported into Pakistan. The Federal Board of Revenue (FBR) willalso be taken on board concerning the taxation policy.
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The draft policy will also give a detailed plan for the development ofinfrastructure (battery charging units) so it becomes reasonable in termsof cost-benefit for EV early adopters. For this purpose, the Power Divisionwill also be taken on board for the fixation of reasonable and attractivetariffs for the EVs.Loans and Vehicle Replacement Assistance Program
The Provincial Governments will provide loans via private financialinstitutions to EV customers, especially for 3 wheelers, so that therickshaw drivers (which are part of the lower-income bracket) can be a partof the “Green and Clean mission of Pakistan”.
The government is also expected to implement a “vehicle replacementassistance program” which issues tax credit to Electric Vehicle owners.
The charging units and federal grants or loans in rural communities willalso be available to increase Electric Vehicle ownership by loweringbarriers to adoption for rural customers (lower income bracket).Air Quality Index 2025
Lahore, Karachi, and Islamabad will be assigned target air quality index2025 by implementing Electric Vehicle credits. The EVs’ consumers will beasked to apply for the sales tax credit on EV purchase in the initial phase.Sales Targets in The Next Five Years
The Electric Vehicle policy prepared by the Ministry of Climate Change hasset multiple targets including the sale of 100,000 electric cars, vans,jeeps and small trucks in the next five years. The Ministry aims toincrease the number to 60,000 electric vehicles sold annually by 2030.
According to the long term targets set in the policy, production targetsfor vehicles in the two, three and four-wheeler category have been set at500,000 units with companies given access to the market within the nextfive years. By 2030, the target has been set at 900,000 units and by 2040the target is 90% of sold vehicles.
