The Economic Coordination Committee (ECC) on Wednesday approved the guidelines for electric vehicles (EV) for 2-3 bicycles and heavy vehicles.
According to the sources, the policy was proposed by the Ministry of Industry and Production, after consultation with various stakeholders of the Engineering Development Board (EDB), the Ministry of Science and Technology, the Ministry of Climate Change and others.
Although the 2019 EV Directive, presented by the MoCC, had previously been approved by the Cabinet, the Directive could not be implemented due to objections from MoIP, IT and other interest groups.
After a series of meetings between the ministries involved, it was decided to revise the EV Directive. However, at a meeting in April, it was decided that the first phase EV Directive would only apply to two-wheelers (motorcycles) and tricycles (rickshaws), as this would address the concerns of both MoCC and MoCC MoIP.
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"It's easier to switch to electric motorcycles, as seen in medium-sized markets like China," said an official at the Ministry of Climate Change. "There are also a very large number of motorcycles, motorcycle rickshaws and auto rickshaws in Pakistan that emit a significant amount of smoke."
The four-wheel drive electric vehicles (cars) were to be acquired later, he claimed.
Not satisfied with the withdrawal of its EV policy, the MoCC had emphasized a one percent general duty on imports of electric motorcycles and electric rickshaw assemblies. The ministry believed that low rates would boost the flow of e-bikes to the market.
However, MoIP opposed the proposal to impede local parts production.
It is also a step towards meeting Pakistan's goals for reducing climate change and improving air quality, as outlined in the Climate Change Act 2016 and the Pakistan Environmental Protection Act 1997. Transport, of course, contributes significantly to responsible climate change for 24% of direct CO2 emissions. emissions from fuel combustion worldwide.
Pakistan ranks eighth in the Germanwatch long-term climate risk index, indicating the extent to which countries are affected by the effects of weather-related damage events. Experts believe that rising temperatures and erratic rainfall could compromise the country's ability to maintain agricultural and livestock production at its current levels, increase the vulnerability of hydropower production and the availability of fresh drinking water to large urban areas in endanger.
Currently, the import duty for two-wheel and three-wheel parts is 46% for parts made in the country and 15% for imported parts.
According to MoIP representatives, Pakistan has a strong production base, as almost all parts of two-wheelers and tricycles are produced on site. The EV policy should encourage existing manufacturers to switch from oil to battery vehicles, she added.
Earlier, the dispute between the production and production departments and the MoCC had brought EV policy into the cabinet, leading to the role of formulating national EV policy through consensus.
