The Pakistan Institute of Development Economics has presented policy recommendations to increase the production and use of electric vehicles in the country. The recommendations have suggested short, medium and long-term goals for the development of the EV industry, including the inclusion of Pakistan’s automobile industry in the global value chain and the preparation of a green financing plan from the State Bank.
According to the details, the recommendations of the PIED under the title of “Pahiya Fuqal Ka Zaman” have been prepared for the development of the electric vehicle industry in Pakistan, in which a comprehensive strategy has been prepared for the development of the EVM industry.
The report has recommended that by 2030, 10% of new four-wheelers and 25% of motorcycles and rickshaws sold in Pakistan should be electric, it should be ensured that by 2035, 50% of rickshaws and motorcycles produced in the country should be electric, and by 2040, half of the four-wheelers and 75% of two or three-wheelers in Pakistan should be electric.
The PAID has suggested that customs duty on imports of components used in the electric vehicle industry be reduced. Electric vehicles and their components should be manufactured locally to increase exports and 50 percent of the vehicles and components produced should be exported by 2040. Joint ventures and technology transfer between local and foreign companies have been recommended to bring investment and manufacturing to Pakistan.
The Pakistan Institute of Development Economics has recommended that the State Bank prepare a green financing plan with the aim of providing financial support for the production of e-vehicles and their components and the expansion of the existing industry.
The report recommends that research in EV technology be increased to reduce the production cost of e-vehicles. A balanced and effective policy for the EV industry will provide the country with a foundation for a sustainable future.
