THE Government on Wednesday announced the New Energy Vehicle (NEV) policy aimed at transitioning 30 per cent of all new vehicles —imported and locally manufactured — in Pakistan to electric power by 2030. Launching the policy Minister for Industries and Production Rana Ranveer Hussain expressed the confidence that the transition to EVs would significantly reduce Pakistan’s dependency on costly imported petroleum products and help mitigate environmental pollution.
The Minister stated that the policy has been prepared in consultation with all stakeholders but soon after the Pakistan Automotive Manufacturers Association (PAMA) issued a statement expressing strong reservations about the potential impact of the new policy on the local auto industry. The concerns of the PAMA might be considered on merit and addressed accordingly but it is also a fact that incentives for investment have to be given whenever a new policy is launched. The countries elsewhere in the world are focusing on cleaner and environment friendly technologies and according to an estimate electric vehicles could make up as much as nearly half of the global car sales by 2035 and Pakistan cannot afford to be left behind. Subsidies of Rs. 50,000 for motorcycles and Rs. 200,000 for rickshaws are understandable as these would directly benefit the common man. Additional initiatives include offering free electric bikes or scooters to 120 high-achieving students and reducing duties on EV components to encourage local manufacturing. The government is also set to establish a New Energy Fund and a New Energy Vehicle Centre to support these measures. There is a general complaint that the authorities sitting in the ministry are paying only lip-service to the otherwise crucial issue of localization of parts as traditional companies are still importing vehicle components, which they should have been manufacturing locally years back. This aspect needs to be addressed from the very outset of the NEV policy. As for concerns of PAMA, instead of seeking undue protections, its members should compete by focusing on modernization and innovations.
