Pakistan: Transition 30% of Transport to Electric Vehicles

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  3. Pakistan: Transition 30% of Transport to Electric Vehicles
Pakistan: Transition 30% of Transport to Electric Vehicles

Minister for Industries and Production Rana Tanveer Hussain unveiled the government’s ambitious plan aiming at shifting 30 percent of transportation to electric vehicles (EVs) by 2030 to promote an environmentally friendly transport system.

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Rana Tanveer Hussain announced that the plan involves transitioning two-wheelers, three-wheelers, and four-wheelers to electric vehicles. The initiative aims to reduce the environmental impact of transportation and alleviate the financial burden of import bills associated with traditional fuel costs.

  • The minister announced that the government has allocated Rs.4 billion for subsidies on two- and three-wheelers. This includes a Rs.50,000 subsidy for motorcycles and a Rs.200,000 subsidy for three-wheelers to make them more affordable.
  • The minister announced that, in collaboration with the Ministry of Power, the government has set a lower tariff after consulting with all stakeholders. Additionally, a battery swap system will soon be introduced to support and promote electric vehicles.

The minister said that many countries are currently using electric vehicles, and the demand is increasing due to new technology, which offers manifold advantages and benefits.

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Rana Tanveer

Rana Tanveer highlighted the commitment and hard work of Prime Minister Shehbaz Sharif to launch a new electric vehicle policy (2025-30) to control air pollution and reduce oil imports. PM has directed that the policy focus must be on incentives and affordable prices for consumers.

The minister highlighted that currently, two licenses have been issued for the manufacturing of electric vehicles, and around 31 people have applied for licenses.

The government has given many incentives to foreign companies to build their plants in Pakistan. Currently, Dewan, an electric vehicle company, is operating in the country and launched a car this year, with plans to introduce a second car by next year. “Pakistan is now in a position to export two- and three-wheelers,” Rana Tanveer remarked.

The subsidy is valid for 40,000 motorcycles, and 120 free motorcycles were given to top students from Islamabad, all four provinces, Gilgit-Baltistan, and Azad Jammu and Kashmir based on a bidding process. The minister highlighted that the government has also engaged banks to offer soft loans.

He said the new policy was developed in consultation with all provinces and stakeholders. In this regard, the Prime Minister has constituted a steering committee under the chairmanship of the Minister for Industries and Production, which includes technical staff and all relevant stakeholders.

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The first draft of this policy has been developed through comprehensive consultation with stakeholders, including EV manufacturers, provincial representatives and ReMIT consultants. The minister emphasized that many investors, especially from China, are showing interest in investing, and the government is processing their applications.

Once plants are operational, they will lead to employment opportunities, he added and admitted that there exist some infrastructure issued related to electric vehicles.

The minister said that in collaboration with the Ministry of Power the government has fixed a tariff on the lower side after consulting with all stakeholders. A battery swap system will soon be introduced to support and promote electric vehicles.

November 21, 2024
Business
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