Ministry of Climate Change is working on a plan of allowing duty-free import of electric vehicles in bulk under the proposed electric vehicle policy, which has raised concern in the local industry that terms it an attempt to kill the industry.
The auto sector falls within the domain of the Ministry of Commerce and Ministry of Industries and Production. The Ministry of Climate Change has exceeded its mandate and prepared draft of the Electric Vehicle Policy, which is likely to be discuss in meeting of the cabinet for approval.
According to the Express Tribune, the Ministry of Industries had asked the Ministry of Climate Change not to intervene in affairs of the auto sector, which came under the purview of the industries ministry. However, the Ministry of Climate Change has continued to work on the policy.
Electric vehicles were expensive; therefore, the Ministry of Climate Change had planned to allow duty-free import of thousands of such vehicles to make the business commercially viable.
The domestic industry voiced serious concern, saying the plan would kill the country’s industry, resulting in unemployment for thousands of people. The auto industry has already reduced its production levels because of lower number of orders from customers. Officials pointed out that there was a difference between engines of fuel-powered vehicles and electric vehicles but remaining parts of the two types of vehicles were the same.
The adviser stressed that the government wanted to create a new market for electric vehicles in Pakistan. He was of the view that the Auto Industry Development Policy 2016-21 did not meet requirements of electric vehicles, therefore, a new auto policy would be introduced.