Federal Government To Announce Electrical Vehicle Policy For

The Government of Pakistan is going to announce electrical vehicle policy for cars 4 Wheelers in support of initiative to provide environment and fuel friendly vehicles to the people. The announcement of EV 4 wheelers is to be announced within next 2 to 3 weeks. Remember that the government has already announced EV policy for 2 wheelers and 3 wheelers.
The Federal Minister for Industries and Production, Hammad Azhar, during a virtual press meet on Wednesday said:
“The Electrical Vehicle policy, which I will be introducing within the next 2 to 3 weeks, will also address some of the issues in the automobile industry. But for overall measures, we have to wait until June. I think that is also an advantage for the government since we will have some time to prepare ourselves and get informed about the challenges and opportunities of this sector,”

Hammad said that in the previous year, smartphones and feature phones started assembled and manufactured locally in Pakistan and automobile manufacturer are also planning to build new auto manufacturing plants o r to expand their existing plants in Pakistan. The automobile companies that are not currently working in Pakistan have also shown interest in beginning operations in the country.
The minister said:
“The Automotive Development Policy was developed in 2016 and it is expiring in June 2021. Until the policy expires, we cannot undertake any drastic measures for this segment, but once it does we will have the opportunity to take a fresh look at this sector and the legislative o r operational requirements to promote the automobile industry in Pakistan,”
Toyota Pakistan has started its third-shift for production while Kia has doubled its capacity in the country, said the Minister.
The Minister further added:
“The automobile industry in Pakistan is heavily protected to the extent of “prohibitive tariffs”, and that the taxes, duties, and other protective measures for the local industry had made it difficult for new companies to do business and had restricted the room for the players that are already operating in Pakistan”
“The previous policy was like giving someone a car as a gift and that was being severely misused,” he said.
With the removal of those measures, the auto players in Pakistan have gained some room and new players, including MG and a few others, will also be coming here.
He said.
“Once the policy expires, we can look at these tariffs with a fresh eye and also take any other necessary measures to address the problems of this industry,”
Responding to a question about new companies and whether they will manufacture cars in Pakistan o r merely establish assembly plants.
Azhar clarified,
“In the beginning, they will have assembling operations but since their tariff concessions expire after 10 years, then it is more viable for them to start localized production as well”.