PRIME Minister Shehbaz Sharif has directed to finalise Electric Vehicles (EV) policy by November after consultations with all federating units and stakeholders. Chairing a meeting, he called for a comprehensive financial model and improved licensing regulations for electric vehicle manufacturing in the country. Indeed, promotion of EVs carries profound significance for the country on multiple fronts.
Firstly, Pakistan faces a unique challenge with its electricity sector. The country currently produces more electricity than it consumes, leading to a situation where capacity payments — costs incurred for unused electricity — burden consumers financially. By increasing demand for electricity through adoption of electric vehicles, we can better utilise surplus power, thus mitigating some of these financial pressures and helping stabilise the energy sector. Moreover, import of petroleum products represents a substantial portion of our import bill. This heavy reliance on imported oil drains valuable foreign exchange reserves and exposes the country to volatility of global oil markets.
The adoption of electric vehicles presents a promising solution to this issue by reducing the need for petroleum products. This, in turn, would help to significantly cut import bill and conserve precious foreign exchange reserves. Environmental protection is another area where shift to electric vehicles can make a substantial difference. We are already grappling with severe climate change challenges, including deteriorating air quality and rising temperatures. By embracing electric vehicles, we can make a significant contribution to reducing carbon emissions and air pollutants.
Also, global transition towards electric vehicles is evident with countries like China leading the way. China’s rapid adoption of EVs underscores importance of keeping pace with global advancements. Pakistan has the opportunity to benefit from China’s expertise and technological advancements in this sector. Collaborating with China, a friendly nation with substantial experience in electric vehicle technology could accelerate Pakistan’s own transition.
This cooperation could include technology transfer, joint ventures and shared research efforts, positioning Pakistan as a competitive player in evolving global EV market. While the Prime Minister’s directives reflect a serious commitment in promoting electric vehicles, past experiences suggest that policies in our country often face challenges in implementation. It is not uncommon for well-intentioned policies to remain theoretical, failing to translate into tangible outcomes. For E-Vehicles policy to succeed, it must be executed with precision and dedication. It is crucial that this policy moves beyond the realm of paper and becomes a practical, actionable plan with clear goals and timelines.
To ensure effectiveness of E-Vehicles policy, several critical areas must be addressed. Firstly, a comprehensive financial model should be developed to support both manufacturers and consumers. This model should include incentives for production and purchase of electric vehicles, such as subsidies, tax breaks and low-interest loans. By making electric vehicles more financially accessible, the policy can encourage widespread adoption and support the growth of local EV industry. Without making electric vehicles accessible to a broad segment of population, the policy’s benefits will be limited.
Additionally, licensing and regulatory framework for electric vehicle manufacturing needs to be streamlined and updated regularly. Simplifying licensing process and adapting regulations to keep pace with technological advancements will foster innovation and attract new entrants into the market. This regulatory support is essential for creating a robust and dynamic electric vehicle industry.
Infrastructure development is another critical component. Establishing a widespread network of recharging stations is necessary to support growing number of electric vehicles and address concerns about range anxiety. A well-planned infrastructure will facilitate adoption of EVs by making it easier for users to charge their vehicles and enhance overall user experience. Furthermore, integrating electric vehicles into public transport systems should be a priority. Starting with major cities, the introduction of electric buses and other public transport options can showcase benefits of EVs on a larger scale.
