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Business Recorder
20 hours ago
- Automotive
- Business Recorder
Pakistan launches National Electric Vehicle Policy 2025-30
Pakistan government on Thursday officially launched the National Electric Vehicle (NEV) Policy 2025-30. Speaking at the launch, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan called the policy a 'historic and transformative step' in Pakistan's journey towards industrial, environmental, and energy reforms, according to a statement from the Ministry of Industries and Production. Haroon Akhtar Khan stated that the new EV policy was aligned with the prime minister's vision of promoting clean, sustainable, and affordable transportation while encouraging local industry and protecting the environment. He emphasised that the transport sector was a major contributor to carbon emissions in Pakistan, and reforms in that area were imperative. National Electric Vehicle policy expected in one month Akhtar said one of the major targets under the policy was to ensure that 30% of all new vehicles sold in Pakistan by 2030 would be electric. The transition is projected to save 2.07 billion litres of fuel annually, amounting to nearly $1 billion in foreign exchange savings. Additionally, the policy is expected to reduce carbon emissions by 4.5 million tons and cut healthcare-related costs by $405 million per year. Akhtar announced that an initial subsidy of Rs9 billion was allocated for the fiscal year 2025-26, under which 116,053 electric bikes and 3,171 electric rickshaws would be facilitated. 'Importantly, 25% of the subsidy is reserved for women to provide them with safe, affordable, and eco-friendly mobility.' He said a fully digital platform was introduced to ensure transparent online application, verification, and disbursement of subsidies. Furthermore, the policy outlines the installation of 40 new EV charging stations on motorways, with an average distance of 105 kilometres between them. Electric Vehicle policy to be announced by end of November: Tanveer The policy also includes the introduction of battery swapping systems, vehicle-to-grid (V2G) schemes, and mandatory integration of EV charging points in new building codes to facilitate wider adoption in urban areas. To encourage local manufacturing, incentives are being provided to domestic producers. Currently, over 90% of parts for two- and three-wheelers are already manufactured locally, according to the ministry. As per the details, the government will also introduce special support packages for small and medium enterprises (SMEs) to further boost localisation. The Automotive Industry Development and Export Plan (AIDEP) tariff facility would continue until 2026 and be phased out gradually by 2030, the official announced. The Special Assistant noted that the NEV policy was developed through consultations with over 60 experts, institutions, and industry stakeholders, guided by a steering committee under the Ministry of Industries and Production since September 2024. The steering committee would hold monthly and quarterly review meetings, while the Auditor General of Pakistan would conduct a performance audit every six months, Akhtar said. He stressed that the NEV policy was not only an environmental revolution but also a foundation for industrial growth, local employment, energy efficiency, and technological self-reliance in Pakistan. He expressed hope that federal and provincial governments, the private sector, and citizens would work together to realise 'this vision of a clean, modern, and sustainable transport system'. Akhtar stated that the policy was a decisive move toward clean energy, sustainable transportation, and industrial development. ' 'It presents a comprehensive and results-driven strategy that aims to lead Pakistan toward a cleaner and more resilient future.' He also highlighted that locally produced goods were 30-40% cheaper than imported alternatives. In the two-wheeler segment alone, more than 90% of parts are now produced locally, according to Akhtar. 'Given Pakistan's vulnerability to climate change, the EV policy will significantly contribute to achieving global carbon reduction targets.' The policy is expected to yield savings of approximately Rs800 billion over the next 24-25 years through reduced fuel imports, the use of cheap electricity, and revenue from carbon credits. 'Charging vehicles with electricity will also reduce capacity payments from Rs174 billion to Rs105 billion, and carbon credits could generate around Rs15 billion in revenue.' The country's total energy demand for EVs over the next five years is projected at 126 terawatt-hours, which could be met using the existing surplus in the national grid, he said. An electric rickshaw or bike user is expected to recover their initial investment within 1 year and 10 months due to the low cost of charging compared to petrol. For instance, if the additional cost of an electric bike is Rs150,000, 'this can be recouped within less than two years through fuel savings'. Akhtar concluded by saying that the government had also provided exemptions on customs duties and sales tax on EV parts to support the local industry. 'This policy should be embraced wholeheartedly by Pakistan, as it is a game-changer for our economy, environment, and industrial landscape.'
Business Recorder
21 hours ago
- Automotive
- Business Recorder
Govt launches National Electric Vehicle Policy 2025-30
The federal government has officially launched the National Electric Vehicle (NEV) Policy 2025-30, the Ministry of Industries and Production said on Thursday. Speaking at the launch, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan called the policy a 'historic and transformative step' in Pakistan's journey towards industrial, environmental, and energy reforms. Haroon Akhtar Khan stated that the new EV policy is aligned with the Prime Minister's vision of promoting clean, sustainable, and affordable transportation while encouraging local industry and protecting the environment. He emphasised that the transport sector is a major contributor to carbon emissions in Pakistan, and reform in this area is imperative. National Electric Vehicle policy expected in one month He said that one of the major targets under the policy is to ensure that 30% of all new vehicles sold in Pakistan by 2030 are electric. This transition is projected to save 2.07 billion litres of fuel annually, amounting to nearly USD 1 billion in foreign exchange savings. Additionally, the policy is expected to reduce carbon emissions by 4.5 million tons and cut healthcare-related costs by USD 405 million per year. Akhtar announced that an initial subsidy of Rs. 9 billion has been allocated for the fiscal year 2025-26, under which 116,053 electric bikes and 3,171 electric rickshaws will be facilitated. Importantly, 25% of this subsidy is reserved for women to provide them with safe, affordable, and eco-friendly mobility. He said a fully digital platform has also been introduced to ensure transparent online application, verification, and disbursement of subsidies. Furthermore, the policy outlines the installation of 40 new EV charging stations on motorways, with an average distance of 105 kilometres between them. Electric Vehicle policy to be announced by end of November: Tanveer The policy also includes the introduction of battery swapping systems, vehicle-to-grid (V2G) schemes, and mandatory integration of EV charging points in new building codes to facilitate wider adoption in urban areas. To encourage local manufacturing, incentives are being provided to domestic producers. Currently, over 90% of parts for two- and three-wheelers are already manufactured locally. The government will also introduce special support packages for small and medium enterprises (SMEs) to further boost localisation. The AIDEP tariff facility will continue until 2026 and be phased out gradually by 2030. The Special Assistant noted that the policy was developed through consultations with over 60 experts, institutions, and industry stakeholders, guided by a steering committee under the Ministry of Industries and Production since September 2024. The steering committee will hold monthly and quarterly review meetings, while the Auditor General of Pakistan will conduct a performance audit every six months. He stressed that the NEV Policy 2025-30 is not only an environmental revolution but also a foundation for industrial growth, local employment, energy efficiency, and technological self-reliance in Pakistan. He expressed hope that federal and provincial governments, the private sector, and citizens will work together to realise this vision of a clean, modern, and sustainable transport system. Akhtar stated that the policy is a decisive move toward clean energy, sustainable transportation, and industrial development. It presents a comprehensive and results-driven strategy that aims to lead Pakistan toward a cleaner and more resilient future. He also highlighted that locally produced goods are 30-40% cheaper than imported alternatives. In the two-wheeler segment alone, more than 90% of parts are now produced locally. Given Pakistan's vulnerability to climate change, the EV policy will significantly contribute to achieving global carbon reduction targets. The policy is expected to yield savings of approximately Rs. 800 billion over the next 24-25 years through reduced fuel imports, the use of cheap electricity, and revenue from carbon credits. Charging vehicles with electricity will also reduce capacity payments from Rs174 billion to Rs105 billion, and carbon credits could generate around Rs15 billion in revenue. The country's total energy demand for EVs over the next five years is projected at 126 terawatt-hours, which can be met using the existing surplus in the national grid. An electric rickshaw or bike user is expected to recover their initial investment within 1 year and 10 months due to the low cost of charging compared to petrol. For instance, if the additional cost of an electric bike is Rs. 150,000, this can be recouped within less than two years through fuel savings. He concluded by saying that the government has also provided exemptions on customs duties and sales tax on EV parts to support the local industry. 'This policy should be embraced wholeheartedly by Pakistan, as it is a game-changer for our economy, environment, and industrial landscape,' Akhtar affirmed.
Business Recorder
31-05-2025
- Automotive
- Business Recorder
PAAPAM concerned at proposed National Tariff Policy 2025-30
LAHORE: The Pakistan Association of Auto Parts Manufacturers (PAAPAM) convened an extraordinary general meeting to discuss the government's proposed National Tariff Policy 2025–30. Members expressed grave concerns over the policy's anticipated negative impact on the auto parts manufacturing sector, warning that its implementation could lead to widespread industry closures and severe job losses. The PAAPAM leadership briefed members on a series of meetings held with the Ministry of Industries and Production (MOIP) and the Engineering Development Board (EDB) to highlight the damaging effects of the tariff rationalisation. The members condemned the unilateral acceptance of recommendations from IMF Consultants, reiterating that such a move fails to account for the fundamental role of the auto parts sector in supplying components to Pakistan's local OEMs—supporting the production of cars, tractors, motorcycles, trucks, buses, and defense/railway equipment. Industry stakeholders emphasised that the proposed tariff reduction would shift Pakistan's economy towards imports rather than local industrialization, deepening reliance on foreign products and depleting the country's already limited foreign exchange reserves. They warned that this policy threatens economic stability, as the financial resources needed for industrial growth will instead be drained by excessive imports. Furthermore, the PAAPAM members highlighted that the auto parts industry serves as a critical training ground for human resource development, equipping skilled workers with engineering and industrial expertise. These trained professionals often secure overseas employment, contributing to national remittances and global workforce competitiveness. The closure of domestic industries due to the tariff change would effectively halt this human resource development pipeline, leading to a shortage of skilled labor and restricting opportunities for Pakistan's workforce in international markets. 'We urged the government to adopt a strategic and structured approach to tariff adjustments instead of implementing abrupt changes that destabilize the industry,' said PAAPAM Chairman Usman Aslam Malik. 'The livelihoods of thousands of skilled workers and the long-term sustainability of Pakistan's industrial sector depend on a policy that nurtures local manufacturing rather than exposing it to unfair competition from imports.' Echoing this sentiment, PAAPAM Senior Vice Chairman Shehryar Qadir emphasised the critical need for an inclusive and well-informed policy framework. 'Pakistan's auto parts industry has worked tirelessly to enhance quality, innovation, and efficiency,' he stated. 'A sudden tariff reduction would undo decades of progress and place local manufacturers at an unfair disadvantage against international suppliers. The government must prioritize industrial sustainability through policies that foster growth rather than hinder it.' The PAAPAM remains committed to constructive engagement with policymakers to ensure an industrial framework that supports local manufacturers, preserves jobs, and strengthens Pakistan's economic resilience. The association calls for establishing a balanced and sustainable tariff structure after consultation with industry stakeholders. Copyright Business Recorder, 2025
Business Recorder
24-05-2025
- Business
- Business Recorder
Meeting of Cement & Clinker Export Task Force held
ISLAMABAD: In a significant move to enhance the competitiveness of Pakistan's cement and clinker exports, the Special Assistant to the Prime Minister, Haroon Akhtar Khan, convened an important meeting of the Cement and Clinker Export Task Force, said a press release issued on Friday. The meeting focused on developing a comprehensive strategy to boost cement sector exports and address existing challenges. The government and industry representatives committed to working collaboratively to improve the export competitiveness of the cement sector. Key obstacles discussed included axle load tax, storage issues, congestion at ports, and railway connectivity. Haroon Akhtar Khan emphasised the government's full support for the cement industry to overcome export barriers, stating, 'The government will provide complete backing to the cement industry to facilitate and increase exports.' He called on all related institutions to join hands and work in coordination to find effective solutions to these challenges, highlighting that 'cooperation and harmony among all stakeholders are essential for progress.' To strengthen Pakistan's position in the global cement market, the Special Assistant stressed the need for a united and continuous effort, saying, 'We must work day and night to enhance the global competitiveness of our cement.' Further, Haroon Akhtar Khan directed the formation of sub-committees within the task force and assigned them new responsibilities to accelerate the implementation of export promotion strategies. The Ministry of Industries and Production remains committed to supporting the cement sector as it strives to increase its footprint in international markets and contribute to the country's economic growth. Copyright Business Recorder, 2025
Business Recorder
24-05-2025
- Business
- Business Recorder
SAPM assures PVMA of prompt dues clearance
ISLAMABAD: Pakistan Vanaspati Manufacturers Association (PVMA) raised the challenges facing the ghee manufacturing sector including outstanding dues in a high-level meeting. The high-level meeting was held on Friday between Prime Minister's Special Assistant, Haroon Akhtar Khan and the Pakistan Vanaspati Manufacturers Association (PVMA). Present at the meeting were PVMA Chairman Sheikh Umar Rehan, Secretary of the Ministry of Industries and Production Saif Anjum, and representatives of the ghee industry. The discussions focused in detail on the challenges facing the ghee manufacturing sector. Haroon Akhtar Khan acknowledged the concerns raised by the industry and assured them of the government's support. 'We fully recognise the issues being faced by the ghee sector and are committed to not putting the industry under any additional pressure,' said Haroon Akhtar Khan. He assured that all outstanding dues will be paid promptly. 'The Government of Prime Minister Shehbaz Sharif will ensure the timely disbursement of all pending payments,' he stated. While acknowledging that cash disbursements take time, he emphasised that efforts will be made to expedite the process. Khan also highlighted the government's recent efforts in supporting low-income families, stating, 'Prime Minister Shehbaz Sharif successfully delivered the Ramazan package directly to deserving households.' He reiterated the Ministry of Industries and Production's dedication to resolving the industry's concerns and emphasised, 'The Government and the Ministry of Industries and Production are always available to support and address your issues.' 'Prime Minister Shehbaz Sharif is committed to taking every possible step for the facilitation of the business community,' Haroon Akhtar Khan concluded. Copyright Business Recorder, 2025
