ISLAMABAD (Kashmir English): Pakistan is going to great lengths to increase the electric vehicle (EV) industry, with the government implementing new policies to promote the use of electric bikes, rickshaws, and cars.
The Secretary for Industry and Production informed a National Assembly committee that the government has introduced a whopping subsidy of Rs80,000 on electric bikes costing Rs250,000.
This is all part of the government’s drive to improve the use of clean energy and cut back on reliance on imported fuel.
Along with this, the charging price of electric cars has been cut down. The unit price of electric charging stations has been lowered from Rs 92 to Rs 39.07.
Charging station operators have been provided with the freedom to charge any price they want, with regulatory agencies providing oversight.
He also added that the market of electric two- and three-wheelers is expanding at a fast pace. One hundred thousand units of electric vehicles (EVs) have been targeted to be manufactured this year, but demand is overtaking projections, particularly from Punjab.
The government is focusing on promoting local production of electric vehicles and components, such as batteries and spare parts. The aim is to manufacture 100% of the spare parts locally within two years. If this target is not achieved, the manufacturers will lose subsidies.
As of 2024, more than 76,000 electric vehicles are already on the roads in Pakistan, aiming to achieve 30% of overall automobile sales in Pakistan by 2030. For this purpose, the government plans to install 3,000 charging points all over Pakistan within the coming years.
In the meeting, the committee questioned inconsistencies in the policy, more so tax exemptions for two- and three-wheeled EVs, and the imposition of new taxes on hybrid cars after the budget has been approved.
The Secretary, however, assured that the International Monetary Fund (IMF) had approved the policy, with substantial financial support, including a 1.4 billion dollar financing package and a 1.8 million dollar grant by the International Finance Corporation (IFC).
The government believes that the EV policy will save the nation about one billion dollars in oil imports every year and cut healthcare expenditure by about 450 million dollars with better air quality.
