The Electric Vehicles (EVs) & Public Policy of Pakistan

The Electric Vehicles (EVs) & Public Policy of Pakistan

Khalid Mahmood

The concept of electric vehicles (EVs) has been around for a long time, with early experiments and prototypes dating back to the 19th century.

In the early 19th century, inventors like Robert Anderson and Thomas Davenport created some of the earliest electric vehicles. These were usually small-scale models or prototypes.

In the late 19th and early 20th centuries, electric cars actually enjoyed a period of popularity, particularly among urban dwellers. They were quiet, clean, and easy to operate compared to early internal combustion engine vehicles. Companies like Baker, Detroit Electric, and Columbia produced electric cars during this time.

Interest in electric vehicles began to revive in the late 20th century due to concerns about pollution and dependence on fossil fuels. Companies like General Motors and Toyota introduced modern electric cars in the 1990s, such as the GM EV1 and the Toyota RAV4 EV.

The real breakthrough came with the founding of Tesla Motors by Elon Musk, Martin Eberhard, and others in 2003. Tesla’s Roadster, introduced in 2008, demonstrated that electric cars could be sleek, high-performance vehicles with significant range. Since then, Tesla has become synonymous with electric cars and has spurred other automakers to invest heavily in electric vehicle technology.

The Governments of European, American and Chinese incentives, stricter emissions regulations, and growing environmental awareness have also played significant roles in the rise of electric vehicles. Many countries now offer subsidies or tax incentives to encourage the adoption of EVs, while others have announced plans to ban the sale of new gasoline and diesel cars in the coming years.

In short, the origin of electric vehicles is a story of innovation, competition, and evolving societal priorities, with early experiments paving the way for the modern electric car revolution.

The future of electric vehicles (EVs) holds significant promise, with several potential effects on human life such as: Environmental Impact, Energy Independence: Health Benefits:Technological Advancements: Economic Opportunities and Urban Planning and Mobility:

In summary, the importance of electric vehicles in modern times cannot be overstated. They represent a sustainable, efficient, and technologically advanced solution to address pressing environmental, energy, and transportation challenges facing society today. By embracing EVs, individuals, businesses, and governments can contribute to a cleaner, healthier, and more sustainable future for all.

Different countries like Norway, China, Germany, United States and Netherlands took different initiatives to promote Electrical Vehicles in the present time. A few initiatives taken by these government are as under: Exempt from import duties, exempted one-time registration tax, Reduced or waived tolls on many roads and bridges.

Granted the privilege of using bus lanes, allowing them to bypass traffic in congested areas. Many public charging stations in Norway offer free electricity, encouraging the use of electric vehicles.

Free or discounted parking in city centers, Credit system for automakers, where they earn credits based on the production and sales of new energy vehicles, Imposed sales quotas for NEVs on automakers. These quotas mandate that a certain percentage of an automaker’s total annual vehicle sales must be new energy vehicles, introduced regulations related to the recycling of batteries used in electric vehicles. These regulations aim to address environmental concerns associated with battery disposal and promote sustainable practices in the electric vehicle industry., Chinese authorities have established product certification and safety standards for electric vehicles to ensure their reliability, safety, and compliance with technical specifications, China has extended its tax exemption policy for new energy vehicles (NEVs) until 2027, Reduced or waived vehicle taxes, Some cities government in Germany announced financial incentives, Access to carpool lanes, and preferential parking for electric vehicles, Partnerships between the government, private sector, and local authorities for EV charging infrastructures, The German government has allocated funds to support the deployment of charging infrastructure. Financial incentives and grants are provided to businesses, municipalities, and organizations to install public charging stations.

The German Government is committed to have 1 million public charging points across the country by 2030.In different European countries, the tax credit ranges from $2,500 to $7,500 per vehicle at Federal Level. Some states in Europe provide their own tax credits for electric vehicle purchases, which can be applied in addition to the federal tax credit. The states also offer special license plates for electric vehicles, often providing additional benefits such as free parking or reduced tolls. Educational programs to raise awareness about the benefits of electric vehicles. These programs may include outreach events, workshops, and informational resources for consumers.

Public & private collaborations to install public charging stations in strategic locations such as urban areas, shopping centers, parking lots, and along highways.

The U.S. Customs and Border Protection (CBP) announced rates of Auto: 2.5%, Trucks: 25%, Motorcycles: 2.4% including exempt from the BPM (import tax) & Registration.

The Pakistani government started offering various incentives a few years ago in an effort to encourage the use of electric vehicles in the country. Without a doubt, these actions will boost the nation’s economy and generate new employment opportunities. Nevertheless, Pakistan’s government hasn’t taken the necessary action to encourage more electric vehicles, unlike those in Europe and East Asia. Promoting electrical vehicles in the nation is hampered greatly by the established automakers in the nation.

In the upcoming budget for Fiscal Year 2024–2025, the government ought to take into account and declare the following practical measures to encourage electrical vehicles.

To import CBUs units: Sale tax (18%), Income tax (12%), additional custom duty (7%) be exempted for at least 2 years. Such measures will help to decrease import of gasoline products and save the foreign currency.

Engineering Development Board – Provincial Assembling / OEM-SKD/CKD certificate be issued under a specific time framework. No lead acid batteries are allowed to be used in any category of EVs. (Lithium iron phosphate battery (LiFePO4) be used).

The vendors must give specific guaranty of batteries. (for 2 & 3 Wheelers minimum 2 years and for 4 Wheelers Upto 5 Years or 120,000KM) Special incentives and grants are given for R&D to different universities/ organizations to develop new EVs projects.

Grants are provided to different educational institutions to train human resources development for local and international markets including Scholarship to deserving students.

Only certified human resource should allow to work with industry.

The Higher Education Commission should prepare a curriculum for BS & MS level including the needs of future technology, vehicle design and soft skills.

EV/ Battery & Motor Quality Standards: According to Pakistani culture and requirement quality & safety standards be adopted.

Standards required for the construction and operation of charging stations, as well as technical specifications for charging connectors.

Special Financial loans policy is required from States Bank, incentives from city governments for charging stations network.

All new filling stations must have EV charging facilities. All present oil marketing companies are directed to provide the EV charging facilities on priority basis (PSO, Shell, Total, etc.) NEPRA should announce a special discounted rate for EV charging companies. Special Green plates are provided to all EVs to promote the EVs industry.

The writer is the CEO, Pak-China Huazi Green Energy (Private) Limited