The cabinet had formed a committee to finalize the Pakistan’s EV policy due to the tussle between Industries and Production Division and the Ministry of Climate Change.
Committee comprised on adviser to the PM on commerce as the convener and minister for science and technology, adviser to the PM on climate change and special assistant to the PM on petroleum as members. The committee had assigned task to finalize the policy draft within 60 days. However, the Industries and Production Division would thereafter submit the draft to the cabinet for approval.
Ministry of Climate Change had sent a summary on EV policy to the cabinet in past but the role has now been transferred to the Industries and Production Division.
The Industries Division informed the cabinet that the Rules of Business 1972, framed under Articles 90 and 99 of the Constitution of Pakistan, provided mechanism for a smooth and lawful inter-ministerial/division work in the federal government. Under Rule 15(2) of Schedule 11 of the Rules of Business 1972, the subject of formulation of industrial policy has been allocated to the Industries and Production Division.
The Industries Division has already framed different industrial polices in the past and the Automotive Industry Development Policy (AIDP) 2016-21 is an example in this regard.
The Cabinet Division conveyed its opinion that the assigned role for the Ministry of Climate Change did not relate to the formulation of any industry related policy.
The Industries Division held number of meetings with different associations and stakeholders including the climate change ministry, Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam), Pakistan Automotive Manufacturers Association (Pama) and Auto Industry Development Committee (AIDC) to avoid any misunderstanding. However, the climate change ministry took the summary to the cabinet for approval of the EV policy without consultation with the Industries Division.
Ministry of Climate Change arguing its point of view during discussions that EV policy was framed by the Ministry of Environment in most of the countries of the world.
In line with that and in the absence of any initiative by the Industries Division, the Ministry of Climate Change drafted the national EV policy, in consultation with all the stakeholders, including the Industries Division, which was approved by the cabinet. It was requested that since a lot of work had already been done, the matter should remain within the domain of the Climate Change Division.
The Industries Division was of the view that except for the change that EV was battery-powered, the rest was the same as a normal car. This justifies that the EV policy should stay with the Industries Division
Meanwhile, Pak Suzuki Motor Company and Honda Atlas Cars have required some incentives for hybrid cars for the electric and hybrid vehicle policy 2020-25.
In the wake of Coronavirus outbreak that led to the closing of auto industry in Pakistan, Pak Suzuki Motor has also requested the government to delay electric and hybrid vehicle policy for one year.