Electric car and motorcycle in Pakistan.
Companies manufacturing electric and motorcycles in Pakistan have been offered concession. The Cabinet-approved Electric Vehicle Policy, including tax and customs duty exemptions.
The policy was approved last Tuesday. It is stated that by 2030, 30 per cent of the country’s vehicles will be electric. Some local CNG stations will be converted into electric charging units.
However, due to the lack of infrastructure for electric vehicles, experts are calling these targets ‘unrealistic’.
On the other hand, the country’s major auto companies have not yet indicated their support for the policy.
How will electric car and motorcycle come to Pakistan?
Addressing a press conference on Tuesday, Malik Amin Aslam, Advisor to the Prime Minister on Climate Change, said that many companies in Pakistan were ready to make electric vehicles. The companies of motorcycles and cars were just waiting for government policy.
He said that the facilities provided to the local manufacturers would bring the prices of electric vehicles on par with ordinary vehicles. The cost of electric vehicles is one-third. The government wants to reduce the oil import bill by promoting it.
In addition, the government has reduced customs duty on imports of used electric vehicles for the initial phase TY IM
Since batteries play a central role in electric vehicles, they want to sell batteries on installment.
This means that it will be easier for people living in Pakistan to order an electric vehicle from outside and drive on the roads here than before.
Some of the salient features of the Electric Vehicle Policy
- In the next four years, 100,000 vehicles will be brought to electric technology while 500,000 motorcycles and rickshaws will run on electricity.
- There will be one per cent customs duty on imports of electric vehicle parts and batteries, while one per cent general sales tax will be levied on electric vehicles, motorcycles and rickshaws manufactured in Pakistan.
- There will be no registration fee and token tax on electric vehicles made in Pakistan. Special registration plates will be introduced for them.
- Used electric vehicles and motorcycles will be subject to 15% customs duty for two years.
- In the initial phase, it has been proposed to set up 3,000 CNG stations for electric vehicle charging units.
- As an initial target, it has been decided to bring 30% of the country’s vehicles on electric technology by 2030, which will save دو 2 billion in oil import bill.
- It is proposed to create special economic zones for the manufacture of electric vehicles.
Batteries for Electric Car and Motorcycles.
Since batteries play a central role in electric vehicles, Malik Amin Aslam has mentioned selling electric batteries in installments.
Moreover, under this scheme, people will be able to use charging units. Adviser to the Prime Minister said that a Korean company manufacturing lithium ion batteries for electric cars has expressed interest in setting up its plant in Lahore, Pakistan.
‘Building infrastructure for electric cars is very important otherwise this technology will fail in Pakistan’
‘Electric car and motorcycle policy targets in Pakistan are unrealistic‘
A newscaster, who is affiliated with a German company called SAP and works as a public sector adviser in Pakistan.
According to him, due to the lack of infrastructure in the country, the goals of this policy are ‘unrealistic. The problem of load shedding is also noteworthy here.
He says other countries have done the same, but by then they have made technological progress.
Expressing his opinion, he said that the common man is more concerned about individual savings than climate change.
“This policy has been formulated by the Ministry of Climate Change and does not fully include the Ministry of Industry and existing industrialists,” he said.
On the other hand, Usman Sheikh, CEO of Ouj Technologies, a Lahore-based electric motorcycle company, welcomed the policy. But at the same time, they have expressed reservations.
“Overall, this policy is good, but it would have been even better if it had reduced sales tax and duty to zero, like solar energy,” he said.
“If concessions are announced for buyers (of electric motorcycles and cars), such as toll tax and excise tax exemptions, it will be easier for people to adopt the technology.”
Usman Sheikh says that people will be able to come to electric vehicles faster only if they see an immediate benefit in it.
CNG station and electric charging unit
Adviser to the Prime Minister has said that the existing infrastructure could be shifted to electric vehicles and motorcycles.
The policy proposes to make some petrol pumps and CNG stations electric charging units.
“Three thousand CNG stations are closed at the moment because of gas shortages and shortages,” he said. Efforts will be made to convert all these stations into electric vehicle charging stations.
Adviser on Smart Governance Farjeel Javed said that when electric motorcycles and vehicles become commonplace, people will need to be charged in places.
“Building infrastructure for electric cars is very important, otherwise this technology will fail in Pakistan,” he said.
Electric Car and Motorcycle police in initial phase.
In the initial phase, it has been proposed to set up 3,000 CNG stations for electric vehicle charging units.
He said that under this policy, pilot projects would be introduced in Lahore, Karachi and Islamabad and talks would be held with the CNG Association.
“The SBP has been asked to work on financial assistance and subsidies for you (gas station owners),” he said.
According to Farjeel Javed, the owners of these facilities will be encouraged so that they can easily adopt this technology.
He says that with the help of fast charging, a motorcycle or a rickshaw can be charged in at least 10 to 15 minutes.
According to him, his company’s motorcycle can travel up to 70 km on a single charge. However, charging an electric vehicle depends on the size of the battery and can take a long time.
Consultation with Auto Industry.
Papam, a Pakistani auto parts maker, said in a statement that the new policy would create more chaos.
Auto companies object that the previous government had given an automotive development policy for 2016-2021 which introduced measures to promote investment in the local industry.
He alleged that local auto companies were not consulted before the approval of the electric vehicle policy.
Chairman Ghias Paracha agave briefing about CNG stations in electric vehicle policy. He said that government of Pakistan did not consult us before formulating this policy.
However, he said that if the government wants to use inactive CNG stations for charging electric vehicles, it is ready to support them.