Pakistan government incentivizes EV production by providing licenses to 57 manufacturers.
In a major step toward enhancing local electric vehicle (EV) production, the government has granted licenses to 57 manufacturers, according to a report on Tuesday.
Out of these, 55 manufacturers will focus on assembling two- and three-wheelers, while 2 will produce four-wheelers. To support the expanding EV market, the government also plans to establish charging infrastructure, including fast chargers and battery swapping stations.
The new EV policy offers several incentives, such as free vehicle registration, exemptions from annual token fees, and toll tax waivers. Additionally, a proposal to establish at least one EV zone in each province, including Islamabad, is under consideration.
Given the challenges of foreign exchange constraints and environmental concerns, the government has been actively pushing for renewable energy development. This initiative follows increasing pressure from the Senate Standing Committee on Climate Change, which has called for stronger policies to address the climate crisis. Senator Sherry Rehman criticized Pakistan’s slow EV progress, noting that only 60,000 EVs have been produced, far short of the 600,000 target.
To accelerate EV adoption, the government announced a 45% tariff reduction for EV charging stations, lowering the rate from Rs71.10 to Rs39.40 per unit. Federal Minister for Energy Awais Ahmad Leghari highlighted that this price cut would boost charging station growth and allow individuals to set up small-scale charging businesses. The approval process for new charging stations has also been streamlined through an online portal, with approvals promised within 15 days.
Additionally, the energy minister urged international financial institutions to support Pakistan’s EV transition by offering green financing options.
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