The National Electric Vehicle (NEV) Policy has been formulated by the Climate Change Division. It has been developed to expedite the introduction of Electric vehicles (EV) in the country. According to an estimate transportation accounts for over 40 percent of the airborne emissions and EVs can substantially reduce this number while at the same time considerably shrinking the fuel import bill.
The NEV policy will be implemented in the following phases. (i) market development and public awareness through incentives and subsidies on electric vehicles manufacturers (year 1 and 2); (ii) fuel import bill substitution through targeted penetration of electric (year 3 and 4); and (iii) reasonable local adoption and export of electric vehicles and its components (year 5 and beyond). The NEV policy is yet to be approved by the Economic Coordination Committee.
According to the long term targets set in the policy, production targets for vehicles in the two, three and four wheeler category have been set at 500,000 units with companies given access to the market within the next five years. By 2030, the target has been set at 900,000 units and by 2040 the target is 90% of sold vehicles
The PML (N) government in its federal budget 2018-19 had reduced customs duty on the import of electric cars from 50 percent to 25 percent, in addition to exemption from 15 percent regulatory duty, and fixing import duty at 10 per cent on CKD.
