Sources from the Engineering Development Board (EDB) have confirmed that the auto industry is opposing the unrestricted incentives provided to the Electric Vehicles (EVs) in the country. They claim that investors can misuse the incentives and damage the whole industry.
This has been revealed at a time when several EV investors have shown interest in the Pakistani market after the government’s new policies on EVs.
EVs have gathered a lot of interest from investors in Pakistan but the EDB has started opposing the idea of unrestricted incentives for such vehicles.
During a meeting held by the Ministry of Industries and Production, the EDB members claimed that providing unrestricted incentives is not only risky but an unsustainable model in the longer run.
The EDB requested all the participants of the meeting to share proposals regarding EVs to “formulate policy framework for companies which aspire to bring EVs.”
Participants argued that since EVs have the same parts as the fuel cars, incentives should only be given to the battery and not the whole vehicle. They stated that this could hurt the part localization segment of the auto industry.
A source close to the matter revealed:
There was a concern shared in the meeting that this new category may become an avenue to import parts and vehicles at next to no tariff and turn the industry upside down.
Some members also argued that the definition of EVs, semi-EVs and hybrid vehicles needs to be well defined, beyond any doubt.