ISLAMABAD: The Ministry of Climate Change is working on a plan to allow duty-free import of electric cars. This has raised some serious concerns within the local auto industry that terms it an attempt to kill the automobile industry.
The climate change ministry has exceeded its mandate in preparing the draft copy of the Electric Vehicle Policy, as the auto industry falls under the purview of the Ministry of Commerce and Ministry of Industries and Production.
The policy will be discussed in the upcoming cabinet meeting for approval for import of electric cars.
Earlier, the climate change ministry had put the draft on its website but it was later removed after the Ministry of Industries voiced its reservations.
According to Tribune, MoIP had asked MoCC not to intervene in affairs of the auto sector, which came under the concern of the industries ministry. However, MoCC has continued to work on the EV policy.
It is also being reported that since electric vehicles were expensive, the Ministry of Climate Change had planned to allow duty-free import of electric cars to make the business commercially viable.
The Ministry of Climate Change wants to allow electric cars to be imported duty-free as they are expensive and making them duty-free would help make these cars commercially viable.
However, the idea has come under fire from the domestic industry, which says that it would negatively impact the local industry and lead to thousands becoming unemployed.
Local production is already quite low due to lower orders from customers. Officials have pointed out that other than the engines of both fuel-operated and electric-operated cars the rest of the parts are same.
There are also concerns that the auto part industry would suffer if the importers started selling electric car parts in the country.