ISLAMABAD – Pakistani government is taking steps to promote electric vehicles (EVs) through various strategies, and is considering subsidies and tax rebates to lower purchase costs, along with investments in charging infrastructure.
These measures aimed to cut emissions and to promote automakers to produce more EVs. In latest proposal, the federal government is planning to launch a credit guarantee scheme aimed at promoting electric vehicle (EV) adoption through the central bank.
In this regard, the government is allocating Rs4 billion to purchase 42,000 electric vehicles, including 40,000 bikes and 2,000 three-wheelers. Under international obligations on gender equality, 25pc of the funding will be reserved specifically for women, while the remaining 75% will be available to the general public.
EV Loan Scheme Pakistan
Banks in the country will provide loans up to Rs1 million at an interest rate of KIBOR + 3pc, with the same rate offered as a subsidy to borrowers.
These proposals were discussed during recent steering committee meeting while Secretary of the Ministry of Industries and Production (MoI&P) emphasised the need for consultation with the SBP before the official announcement of the financing scheme, and suggested that EV manufacturers take charge of loan management.
Additionally, concerns were raised about 18pc sales tax on localised components, which impacts manufacturing costs. Industries & Production ministry secretary indicated that EV manufacturers could claim tax refunds on local production and proposed that the Federal Board of Revenue (FBR) create a mechanism to facilitate this process.
This initiative is expected to significantly boost the electric vehicle sector in Pakistan, making EVs more accessible to consumers and promoting sustainable transportation solutions across the country.
Pakistan’s first indigenously-built electric car to hit market by December 2024
