Pakistan Approves First Electric Vehicle (EV) Policy

The federal cabinet has approved the new Electric Vehicle (EV) policy for four wheelers. Earlier this week the EV policy was approved by the Economic Coordination Committee (ECC) which was today presented against the federal cabinet for approval.

Related: Electric Vehicle Policy for 4 Wheelers Approved

The new policy stipulates rules for electric four-wheelers along the lines of import and export, taxation, registration, and customs duty. Federal Minister for Industries and Production Mr Hammad Azhar has made the announcement in his tweet while highlighting the key benefit the EV policy offers:

  • No Additional Customs Duty (ACD) on the import of EVs
  • No Advanced Sales Tax (AST) on the import of EVs
  • Only 1% tax levied on the import of EV parts for manufacturers
  • Only 1% sales tax for locally made EVs up to 50kwh and light commercial vehicles up to 150 kwh
  • Only 1% duty on import of charging equipment
  • No Federal Excise Duty (FED) on EVs
  • Duty free import of plant and machinery for manufacturing of EVs
  • No registration and annual renewal fee for EVs in Islamabad

According to Fawad Chaudhry, the shift from conventional combustion engine vehicles to EVs will not only benefit the environment but will also lessen the burden on country’s fuel import bill while help bringing a descending trend in prices.

The government is also working on to set up EV charging infrastructure across the country to help boost the use of electric vehicles. Furthermore government is also planning electrification of the public transport sector which will see nearly 40% of public buses to be converted into EVs with the next 10 years.

Related: Toyota Chief Not Happy with EV Revolution

As far as the private transport is concerned, South Korean & Chinese automakers will be gearing up to introduce 4-wheel electric vehicle in Pakistan, however this is the area where Japanese automakers are expected to lag behind due to the absence of electric vehicles in their global lineup. From the looks of it, the competition in the auto sector is expected to become very interesting in forthcoming period.

11 thoughts on “Pakistan Approves First Electric Vehicle (EV) Policy”

  1. The Japanese do have the likes of Toyota Mirai in their arsenal, furthermore, it is all just a plan. Pakistan has yet to fill the gap between demand and supply of power requirement. How can the government then focus fully on something that is considered luxury rather than necessity. electric car does not affect or even mean anything to masses of the Pakistan, most of whom cannot even charge their phones or power-up their fans in summers. I am not saying approving policy is not good measure. However, being realistic is more essential for smooth running of the economy.

    1. Dear, whining is not going to stop the inevitable. Better be part of the change and think positive. 3 bigs will be history in less than 5 years down the road. Pakistan Zindabad

      1. Wow, look who’s talking, you cannot even control your own fate, yet you are predicting that a Japanese company is going to fade out of Pakistan. Such pride, and ignorance. Also, for the record refer the most valuable brands list in the world. Even globally, the Koreans are not close to the Japanese. Lastly, I have been living with old shape Cultus for a great 40,000 kms. Therefore, please stop telling me about the fate of others and worry about yours. Good day to you.

        1. Bro i didnot meant to offend you. Have you heard about a brand named ‘NOKIA’? And a bird named ‘Ostrich’. And then there are these ‘3 Bigs’. Don’t you find any similarity in all 3? I appreciate your honest reply in advance 🙂

          1. T Malik, seething in his/her hatred of big 3, totally missed Khurram’s point and in fact as an Ostrich his/her head is so deep in the sand that s/he failed to acknowledge that EV is useless with no electricity.

            Go ahead T Malik, buy your EV then in a few months you’ll also buy a fossil-fuel-powered generator to charge your EV.
            You’re too enthusiastic about EV? Don’t just talk! Act! Immediately! Take action! Let us see you put your money on it, you can also write “owner’s review” on this blog about your ownership experience.

          2. Lost the race? Toyota was behind American companies in 80 and yet overtook them. It is a most loved brand and until that affection remains, it is not losing. Also, while trying to convince someone for a change you need to have a well supported evidence. You have not and are rather rudly telling others to accept change. So I agree with sir or madam EVC about you buying Tesla and then trying to recharge it under current Pakistani circumstances and then briefing us with a real-time review. Stakes? Like yourself I am a guy not yet given a chance to make such unrealistic policies. So like yourself I am merely debating and shall be accepting the change when a pillar for it has been created.

          3. I am not at all offended. Yes, I have heard about Nokia, it is operating in a very different market and at that time it was undiversified. Also, the infrastructure supporting Android was also present. Toyota on the other hand is targeting a different type of market and is a diversified company. Lastly, the market infrastructure is not even made and so is hardly in position to support operations of an EV in smooth manner.

  2. Just to clarify, Toyota Mirai is a Hydrogen Fuel Cell car. Totally different from the plugin EVs. It requires hydrogen to be pumped into a cylinder just like CNG cars. It is just a token offering from Toyota. Their expertise lie in Hybrid cars.
    That is my point here, Pakistan skipped a whole middle step on its way to electrification. All nations who have gone for EVs first promoted Hybrids. This began reducing their carbon foot print. In the meantime they concentrated on establishing their EV infrastructure.
    Judging by the way our government does things, the only evidence we have of an EV infrastructure are a few token commercial EV charge points in a few big cities.
    Just by doing this the government might think it’s job is done. In truth it is far from it. The EV infrastructure needs a LOT of investment. So far… Nothing significant.
    Our power infrastructure also needs to be updated. Again, introducing Hybrids now would have been a better step. It would allow time for the maturity of the EV charging infrastructure in the country and the energy problem.
    Also, from what I have read in this article, there is no relief for the consumer. Sure the import tax is low but where are the stipulations that make it mandatory to keep the price in check and make it cheap for the buying public. From what I have seen these rules make it easy for the companies to make a killing in profits. They can pay low taxes and then charge high amounts from the people with no check and balances. The only alibi, “oh EVs are so expensive! So that is why the are “premium” in the market.” The buying public is screwed again.
    Like all nations who have gone for EVs, Pakistan needs to give substantial and tangible incentives to the public for going electric.
    Petrol cars, too much tax, thus too high a price. EVs, low tax, but no check on companies. So again too high a price. What’s wrong with this picture???

    1. No one has highlighted the plight more than Usman bhai. Let’s pray someone sitting high up there might get a chance to read and know what public needs are.

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