Brief Overview of Pakistan's Electric Vehicle Policy

Pakistan has a low level of motorization with just 9% of the households owning a car. Nearly half of all households own a motorcycle. Motorization rates in the country have tripled over the last decade and a half, resulting in nearly 40% of all emissions coming from vehicles. Concerns about climate change and environmental pollution have forced the government to to take a number of actions ranging from adoption of Euro6 emission standards for new vehicles with internal combustion engines (ICE) since 2015 and announcement of a national electric vehicle (EV) policy this year.

Vehicle Ownership in Pakistan. Source: PBS

EV Policy:

Pakistan electric vehicle policy 2019 sets EV adoption targets and includes incentives for buyers and manufacturers. It also focuses on development of nationwide charging infrastructure to ease adoption of electric vehicles. Here are some of the salient points of the policy:

 Policy Targets: 

1. Goal for cars: 30% of new sales by 2030 and 90% of new sales by 2040

2. Goal for 2 and 3 wheelers: 50% of new sales by 2030 and 90% of new sales by 2040

3. Goal for buses: 50% of new sales by 2030 and 90% of new sales by 2040

4. Goal for trucks: 30% of new sales by 2030 and 90% of new sales by 2040

Buyer Incentives: 

1. 1% GST for EVs vs 17% for regular vehicles

2. Lower electricity tariffs for EVs

Charging Infrastructure: 

1. Only 1% import duty on charging equipment.

2. Lower power tariffs for charging stations.

3. One fast DC charging station per 3km by 3km area in all major cities

4. DC fast chargers on all motorways every 15-30 km.

5. Ensure uninterrupted power on feeders for charging stations.

Manufacturer Incentives: 

1. All greenfield investments apply to EV manufacturers and those converting their existing facilities to manufacture EVs.

2. State Bank to offer lower rate financing for EV manufacturing.

Summary:

Announcement of National Electric Vehicle (EV) Policy 2019 by Pakistan government is a step in the right direction. It is a forward looking step needed to deal with climate concerns from growing transport sector emissions with rapidly rising vehicle ownership. It also focuses on development of nationwide charging infrastructure to ease adoption of electric vehicles.  Meanwhile it's crucial that Euro6 emission standards be seriously enforced with proper inspections to limit emissions from internal combustion engine (ICE) vehicles being sold now.

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Views: 423

Comment by Riaz Haq on May 26, 2022 at 4:54pm

Chinese company announces to establish EV plant in Karachi

https://arynews.tv/chinese-company-announces-to-establish-ev-plant-...

The ‘Gauss Auto Group,’ a Chinese corporation, has announced to construct electric vehicle (EV) plant in Pakistan’s special economic zone near Port Qasim in Karachi.

The company would enter into a Joint Venture (JV) with AKD Group Holdings (Pvt.) limited and set up the plant near Port Qasim, Karachi on around 1000 acres of land.

The development comes after a delegation led by Mr. Chen Feng, CEO Gauss Auto Group and CEO AKD Group Holding, Mr. Nasir Rizwan visited the Board of Investment (BOI) and held a detailed meeting with the Federal Minister Board of Investment Chaudhry Salik Hussain and Secretary BOI Ms. Fareena Mazhar.

The delegation also highlighted their intention to export their locally produced EVs from Pakistan to other countries. The organization delivered a comprehensive presentation of their production plant and apprised BOI leadership on the variants of the vehicles they are already producing.

Secretary BOI briefed the delegation about Pakistan’s recently launched Electric Vehicle policy which offers benefits to both; existing and new manufacturers.

BOI leadership encouraged Gauss Auto Group to invest in auto sector of Pakistan and extended maximum support and facilitation to the company.

It is pertinent to mention here that Gauss Auto is an enterprise focusing on the innovation and development of automobiles and the integration of resources. The company is registered in Silicon Valley, California, and operates in Shanghai, China.

It is pertinent to mention here that the federal cabinet on Dec.22, 2021 had approved Pakistan’s first Electric Vehicle Policy.

Comment by Riaz Haq on May 26, 2022 at 6:47pm

Pakistan: How cheap is 'cheap electric car'? - BBC URDU

https://youtu.be/TsK-vBZEusY

پیٹرول سے نجات، ٹچ گیئر اور لیدر سیٹس۔۔۔ یہ پاکستان میں متعارف کروائی جانے والی الیکٹرک کار کی چند خصوصیات ہیں۔ اس کار کی چارجنگ کتنی دیر میں ہوتی ہے اور اس پر کتنا خرچہ آتا ہے، جانیے ہماری ویڈیو میں۔۔۔

Comment by Riaz Haq on July 31, 2022 at 7:35am

This Fully Localized Electric Rickshaw is Roomier Than Wagon R

https://propakistani.pk/2022/07/30/this-fully-localized-electric-ri...

According to a company representative, MUVA electric rickshaws are made in Pakistan completely from scratch at their state-of-the-art facility in Lahore.

Pakistan Auto Show (PAS) 2022 saw participation from numerous promising prospects. One such up-and-comer is YES Electromotive — a fully indigenous electric vehicle (EV) maker that seeks to launch MUVA electric rickshaws in Pakistan.

The company is still fine-tuning the product through testing and extensive research and development before officially launching these rickshaws in the market, the representative said.

Short for Modular Utility Vehicle Architecture, MUVA covers a development program for light commercial vehicles. These tiny EVs will serve the same purpose as a conventional rickshaw, but with zero tail-pipe emissions and at almost 7-times less running cost than a petrol-powered three-wheeler.

MUVA electric rickshaw is an ultra-light commercial EV that seats a driver and three passengers. It has a maximum payload capacity of 300 KGs and a curb weight of 450 KGs. It has a single permanent magnet electric motor that makes up to 10.7 horsepower.

The company representative added that the MUVA rickshaw will be sold as a commercial EV only and that the company will aim for fleet sales. He added that YES Electromotive also seeks to adopt a ride-hailing service operating model, whereby the riders will be able to summon these rickshaws via a mobile app.

YES Electromotive is shaping up to be a promising addition to Pakistan’s public transport sector. Stay tuned for more details.

Comment by Riaz Haq on November 14, 2022 at 7:14am

Finding EV batteries
We never learnt how to make engines so why not try our hand at batteries. Only this time, not for ourselves.


https://profit.pakistantoday.com.pk/2022/11/14/finding-ev-batteries-2/

Profit talked to a source at the Geological Survey of Pakistan, who on the condition of being anonymous, did tell us that there were various sites that had been identified with potential lithium reserves. Profit also reached out, persistently might we add, to Ahsan Iqbal, the Federal Minister of Planning & Special Initiatives. Sadly, we could not obtain a comment. Thankfully, his rejection indicates that there may actually be fire to the smoke because a flat rejection is very easy to give. More importantly, Pakistan has been touted to have lithium reserves as far back as 2005 based on a report by the Pakistan Bureau of Statistics.

These reserves were touted to be in Chitral and in Gilgit-Baltistan, but we just never got around to exploring them. Why? A mixture of a lack of finances and aforementioned areas being subject to an insurgency movement not too long ago. Most importantly, these areas in Pakistan are not random places on the map by any means. They, alongside Afghanistan, are part of the Kafiristan Valley. What is the importance of this? Afghanistan is projected to have the largest lithium deposits in the world. And where in Afghanistan are they? Afghanistan’s Nuristan province is touted as one potential destination. It also borders Chitral and Gilgit-Baltistan, and thus we come full circle. So let us tell you why Pakistan will squander this entirely.

Haval, Pakistan’s most technologically advanced company as of right now, chose to build a hybrid electric vehicle rather than an electric vehicle. This is very important, and very concerning. Why do we say this? Because Sazgar, Haval’s parent in Pakistan, does have access to electric vehicles through its arrangements with China’s Haval and BAIC. Yet, they chose not to. Why? “Pakistan is currently not ready for an electric car but it is ready for a hybrid electric one.” Ammar Hameed, Director at Sazgar Engineering Works, told Profit. Now why does Hameed believe that to be the case?

“Electric vehicles are not possible in Pakistan because you need to first install charging points across the country. It’s currently not feasible to own an electric car. They are good for driving within a city but you would find it hard to travel for example from Lahore to Islamabad. They are adding charging stations on the motorway but you will have a shortage of chargers as more EVs come on the road,” Hameed told Profit. “You’ll have to wait half an hour to charge your car. Even with a supercharger, it will take 15-20 minutes to charge. Now imagine there are only two chargers on the motorway and you have four to five cars that need to be charged.” Hameed continued. He is not alone in his concerns

“People do not have the assurance e.g. When I go as a consumer to buy a vehicle, I would like to go from here to Islamabad to Multan to Bahawalpur in one go,” Dr Naveed Arshad, Associate Professor at LUMS told Profit. What does this lack of assurance mean? It means lower potential sales. What do fewer sales mean? Fewer companies want to actually launch electric vehicles. Now what is the importance of this, apart from wanting to find a more affordable alternative to the E-Tron? Lack of interest from the government, and likely subsequent governments to come. Profit understands that this is a sweeping statement so, therefore, let’s contextualise it by explaining how the State approaches industrial policy.

Comment by Riaz Haq on November 14, 2022 at 7:16am

BEIJING: In a move to better investigate and research lithium reserves in Pakistan, a strategic agreement was signed between the China-Pakistan Joint Research Centre on Earth Sciences and Tianqi Lithium Co. at an international conference on lithium battery industry held in Sichuan China, as per a statement by the China-Pakistan Joint Research Centre on Earth Sciences.

https://mmnews.tv/chinese-company-to-explore-lithium-resources-in-p...

The strategic agreement says that both parties will collaborate on the research and application of lithium resources in Pakistan. Efforts will also go to personnel training and academic exchanges to develop joint research on lithium resources in the country, CEN reported.

Lithium reserves have emerged as an important source in the electronic vehicle (EV) industry around the world including Pakistan since the resources are the main raw material of EV battery, which takes up a sizeable portion of EV production cost.

According to Volza’s lithium imports data in Pakistan, Pakistan imports most of its lithium products including lithium primary cells and batteries from countries such as China, the United States and Germany.
Last year, Pakistan devised the Automotive Industry Development and Export Plan (AIDEP 2021-26) with an aim to boost the local EV industry, bring related manufacturing locally and also reduce the use of fossil fuel.

Headquartered in China’s southwestern province of Sichuan, Tianqi Lithium is a global leader in developing and manufacturing lithium products, notably developing lithium-ion battery technologies for application in the electric vehicle and energy storage industries.

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