Pakistan Approves Electric Vehicles Policy for Bikes and Rickshaws
The Economic Coordination Committee (ECC) has approved the guidelines for electric vehicles (EV) for 2-3 wheelers, including bicycles and rickshaws, marking a significant step towards reducing the country’s carbon footprint and promoting sustainable transportation.
Background and Policy Development
The policy was proposed by the Ministry of Industry and Production, in consultation with various stakeholders, including the Engineering Development Board (EDB), the Ministry of Science and Technology, and the Ministry of Climate Change. The 2019 EV policy, presented by the Ministry of Climate Change, had previously been approved by the Cabinet but was not implemented due to objections from the Ministry of Industry and Production and other interest groups.
After a series of meetings between the ministries involved, it was decided to revise the EV policy. In April, it was decided that the first phase of the EV policy would only apply to two-wheelers (motorcycles) and three-wheelers (rickshaws), addressing the concerns of both the Ministry of Climate Change and the Ministry of Industry and Production.
Benefits of Electric Vehicles
Electric vehicles offer several benefits, including reduced greenhouse gas emissions, lower operating costs, and improved air quality. According to an official at the Ministry of Climate Change, “it’s easier to switch to electric motorcycles, as seen in medium-sized markets like China.” Pakistan has a large number of motorcycles, motorcycle rickshaws, and auto rickshaws that emit significant amounts of smoke, contributing to air pollution.
Phased Implementation
The policy will be implemented in phases, with the first phase focusing on two-wheelers and three-wheelers. Four-wheel drive electric vehicles (cars) will be acquired later. This phased approach will allow the government to address the concerns of local manufacturers and promote the development of the electric vehicle industry in Pakistan.
Tariffs and Incentives
The Ministry of Climate Change had proposed a 1% general duty on imports of electric motorcycles and electric rickshaw assemblies to boost the flow of e-bikes to the market. However, the Ministry of Industry and Production opposed the proposal, citing concerns about the impact on local parts production.
Currently, the import duty for two-wheel and three-wheel parts is 46% for locally made parts and 15% for imported parts. The EV policy aims to encourage existing manufacturers to switch from oil to battery vehicles, promoting the development of the local electric vehicle industry.
Environmental Benefits
The adoption of electric vehicles is 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 contributes significantly to climate change, accounting for 24% of direct CO2 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. Rising temperatures and erratic rainfall could compromise the country’s ability to maintain agricultural and livestock production at current levels, increase the vulnerability of hydropower production, and endanger the availability of fresh drinking water to large urban areas.
Frequently Asked Questions
- What is the main objective of the EV policy? The main objective of the EV policy is to promote the adoption of electric vehicles in Pakistan, reducing the country’s carbon footprint and improving air quality.
- Which vehicles are covered under the first phase of the EV policy? The first phase of the EV policy covers two-wheelers (motorcycles) and three-wheelers (rickshaws).
- What are the benefits of electric vehicles? Electric vehicles offer several benefits, including reduced greenhouse gas emissions, lower operating costs, and improved air quality.
The approval of the EV policy for bikes and rickshaws is a significant step towards promoting sustainable transportation in Pakistan. As the country continues to develop its electric vehicle industry, it is expected to have a positive impact on the environment, economy, and public health.
