The federal government through the country’s first ever electric vehicle (EV) policy is on the lookout to reduce the transport sector’s import bill by up to $9 billion as it moves to promote local manufacturing and discourage imports through targeted taxes and incentives.
The update was shared during a meeting of the Senate Standing Committee on Industries and Production at Parliament House on Monday, chaired by Senator Khalida Ateeb.
Officials told the committee that taxes will be imposed on imported electric vehicles, while locally manufactured EVs will enjoy zero or minimal duties. Duties will also apply to imported EV parts to encourage domestic production.
Officials of the Ministry of Industries informed the committee that licenses have already been issued for EV manufacturing, including 17 licenses for three- and four-wheeled vehicles and 77 licenses for electric motorcycles. Four additional licenses for three- and four-wheeled vehicles are in the pipeline. By 2030, the government aims for electric vehicles to make up 30 percent of total vehicles, with an estimated 2.2 million EVs entering the market.
To support adoption, the government is offering subsidies of Rs 80,000 for electric motorcycles and Rs 400,000 for three-wheeled electric vehicles. During the current year, subsidies will be provided for 116,000 electric motorcycles and 3,170 electric rickshaws. Officials said Rs 120 billion is expected to be collected through the carbon levy, which will be used to finance these subsidies.
The committee was also informed that 40 locations for EV charging stations from Peshawar to Karachi have been identified. Legislation is being prepared to make two charging stations mandatory at new petrol pumps and at least one charging station at existing pumps.
Additional Secretary of the Ministry of Industries and Production Asif Saeed Khan told the committee that a one-window facility for investors setting up vehicle manufacturing units is currently not available, though work is underway to introduce it. He also acknowledged that the quality of locally manufactured vehicles does not yet meet global standards, adding that steps are being taken to improve quality.
Engineering Development Board CEO Hamid Ali Mansoor said reforms are underway at the EDB, including an end to illegal data manipulation practices, alongside other institutional changes.
Meanwhile, Senator Danish Kumar raised concerns over complaints about expensive electricity being sold at EV charging stations, stating that the notified rate of Rs 39 per unit is not being implemented. The committee subsequently summoned officials of the Ministry of Power and the National Energy Efficiency and Conservation Authority to its next meeting for clarification.
