Local auto assemblers have shown serious concerns over the newly approved Electric Vehicle (EV) policy. Almost all auto-sector stakeholders have termed the approval of the policy an “ad hoc decision” according to a report published in The Express Tribune.
Earlier this week, the federal cabinet approved the EV policy under which 100,000 cars would be imported over a period of 5 years. The government shared the vision to convert at least 30% of vehicles into electrification by 2030 and aimed to achieve the target by charging only 1% general sales tax on the import of electric vehicles. Moreover, registration of electric vehicles will be free of cost, which will make them affordable for a large number of people.
According to an official representing a Japanese auto assembler in Pakistan:
“We are unable to understand who has drafted and approved such a policy. The approval came as a shock to domestic automobile players whose consent was not sought by government officials on this key issue.”
Stakeholders are of the opinion that these kinds of ad hoc decisions would result in excessive accumulation of external debt and would shift jobs from Pakistan to other countries. Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Chairman Muhammad Akram reacted by saying “with an active auto development policy in place, the new electric vehicle policy would only create confusion”.
Both new as well as existing local assemblers have said that government had promised to take all stakeholders on board prior to approval of the new EV policy. The sudden approval of this policy is nothing but a shock to local auto industry.