Electric Vehicle Policy Approved-Here are its Highlights

The Economic Coordination Committee (ECC) has approved Electric Vehicle (EV) policy for heavy commercial vehicles and two and three-wheelers. The sources reported that the policy was proposed by the Ministry of Industries and Production (MoIP) after a detailed discussion with stakeholders. The stakeholders include Ministry of Climate Change (MoCC) Engineering Development Board (EDB) and the Ministry of Science and Technology.

Last year, the Ministry of Climate Change presented EV policy 2019, which was approved by the cabinet. However, the policy could not be implemented after objections from MoIP, EDB and other involved entities. This development led to a series of meetings among all stakeholders to revisit the policy. In April 2020, the ministries decided to introduce a policy for two and three-wheelers i.e. motorbikes and rickshaws in the first phase. Both MoCC and MoIP favored the decision.
An official of MoCC told media that shifting to e-motorcycles is easier, as seen in the case of the middle-class of China.

“Besides, there is a huge number of motorbikes, auto-rickshaws and motorcycle rickshaws that cause a significant amount of pollution in Pakistan,” the official said, adding that policy regarding cars will be proposed and implemented in a later stage.

The MoCC, which is unhappy over rollback of its proposed policy, has demanded one percent duty on import of assembling parts for E-bikes and E-rickshaws. The ministry argued that low duties would lead to an unnecessary influx of e-bikes in the local market. Meanwhile, MoIP opposed the idea, stating that this will discourage local manufacturers. The MoIP officials said Pakistan has a robust domestic industry as most of the two and three wheeler parts are manufactured in the country. The EV-policy should encourage local enterprises to shift from oil to battery-based vehicles, the ministry said.

Earlier, another tussle between MoCC and Industries and Production Division landed the policy in the cabinet, which directed ECC to resolve the issue through mutual consensus of involving actors.

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