Surprise for car lovers – Climate Ministry wants to allow duty free import of EVs

After the recent import embargo in Pakistan, the illegal and malpractice of importing cars in the country have declined over 75%. While this is a positive sign in some ways, but it had its consequences. So there were rumors that the government is keen to bring a new policy which might actually benefit the customers as well the environment. And with that said  Ministry of Climate Change has a deep interest for a policy that will allow electric vehicles to be imported with a 0% duty. If implemented this might be the beginning of the end of combustion engine cars in the country. And as expected the big there aren’t very happy about this proposal.

Expected to be discussed in the next cabinet meeting for approval, the Climate Change ministry had the draft already live on their website earlier, but it had to be taken down for certain reasons. There are claims that the Climate Change ministry was also warned to leave the auto sector alone by the Industries ministry, but I’m glad they didn’t listen and carried their work on the policy. The main reason the Ministry wants electric cars to be duty-free is that these cars are already way too expensive and not many people can buy them in the first place. Though they are hopeful that the 0% duty scheme might help them gain some traction initially.

Three Fears Of Big Three

Now on to the point that why local manufacturers are not happy about this proposal. First, as always they don’t want to see competition in any way. Also, they claim that the chances of the current industry going out of business are very high. Second, thousands of people will be hanging off a cliff of losing their jobs. Since the production of vehicles is already so low, this new policy might take away the last breath out of the auto industry. And lastly, these companies also fear that the auto part industry would suffer if the importers started selling electric car parts in the country.

Viable Solution

Upon a meeting between Malik Amin Aslam (Prime Minister Advisor) and the CEO of Indus Motor Company (Ali Jamali). Both discussed the benefits of electric vehicle policy for climate changes. Ali Jamali had a solution of his own, which was to help encourage the present manufacturers to make electric cars locally as opposed to buying them from other countries. While this is actually a very good idea but if you take a closer look, there is hardly any Suzuki, Honda and Toyota electric car available for the consumer to buy internationally let alone making one in Pakistan. Even if a miracle happens and we start to see electric cars from the big three. Quality and reliability will be a huge question since electric cars aren’t something to be messed about.

Time to get excited?

I will suggest not to get your hopes very high and sell your current cars in favor of getting a duty free electric cars just yet. The chances of this electrified policy to see the daylight are still very slim. For a country which barely walked out of electricity crisis in the first place, and with nearly zero infrastructure of charging stations, it will be along time before a normal person can even think of getting such cars. Electric cars don’t come cheap in any way and a vehicle with a considerable amount of range for the average user to benefit from costs around $35,000. While cars like Tesla Model 3, Nissan Leaf and Renault Zoe might seem a viable option for Pakistan but still they are going to cost north of PKR50 lakh with 0% duty. Which is already way beyond the buying power of an average consumer in Pakistan. Let’s see how the what solution the Climate Ministry has to offer.