International EV Manufacturers setting up in Pakistan: Fawad Chaudhry

International Electric Vehicle (EV) manufacturers including MG Motors already setting up facilities in Pakistan, according to Fawad Chaudhry, the Federal Minister for Science and Technology.

Fawad Chaudhry explains to Arab News that environment is a serious issue in bigger cities. WIth 35% of the pollution coming from vehicle emissions, it has become increasing important to move towards more environment-friendly EV vehicles.

"For this, we believe that the EV policy that we have introduced will bring a big shift from combustion engines to electric (motors) and that would be beneficial," he adds.

British Car Manufacturer Morris Garages (MG) has almost finished setting up its production plant in Pakistan, while Malaysia's Proton is also coming with an EV variant. Fawad Chaudhry also encouraged key players like Toyota and Honda in the Pakistan's auto manufacturing industry to also introduce electric cars and start manufacturing them in Pakistan.

In light of the recent developments in the EV industry, the Economic Coordination Committee (ECC) of Pakistan approved a new EV policy last week and this decision is expected to be ratified by the Cabinet on today, according to Arab News. Fawad Chaudhry also suggests that after the approval of EV policy from the cabinet, it is important to move a summary for the constitution of an EV Development Board to regulate the growing EV market in the country.

The new policy will remain in effect till the 30th of June, 2026. It imposes a one percent customs duty on auto parts used in assembling vehicles, and zero Additional Custom Duty or Regulatory Duty and Value Added Tax on EV specific parts for Completely Knocked Down units, which are automobiles assembled at a local manufacturing facility.

The Federal Minister for Science and Technology also suggests that import duty of electric vehicles should be abolished for a year or reduced to one percent. This will not only eliminate the on-money charged on cars, but will also develop a culture for electric vehicles in the country.

"In the next 5 years, 20 percent of our vehicles will be electric," Fawad Chaudhry estimates.