POF JVs to set up first Electric Vehicles
News Desk
Pakistan is set to have its first Electric Vehicles (EV) and Electric Batteries Manufacturing /Assembly Plant in Karachi.
Wah Nobel Group of Companies, Almisehal Company, and Sheikh Zia-ul-Haq & Sons (Pvt) Ltd have signed a Memorandum of Understanding. So, the plant will start producing Electric vehicles (EV) and their batteries by mid-2022.
Wah Nobel Group of Companies is a Joint Venture between Pakistan Ordnance Factories through Wah Industries Ltd, SAAB AB, Sweden. Almisehal is a Saudi Arabia based company.
Moreover, they will set up an Electric Vehicles and Electric Batteries Manufacturing and Assembly Plant in Karachi.
Lt Gen Bilal Akbar, HI(M), Chairman POFs and Wah Nobel Group of Companies, was Chief Guest.
However, other top Military, Civil Officers, and Senior Executives of Wah Nobel and S. Zia-ul Haq & Sons (Pvt) Ltd also attended the ceremony.
EV Policy
The PTI had approved EV Policy in June this year to set up plants in Pakistan.
Meanwhile, it approved a policy for electric 2-3 wheelers, motorcycles, rickshaws, loaders. However, it also approved incentives for heavy commercial vehicles, including buses and trucks.
The government approved a policy to acquire technology and encourage EV manufacturing. Therefore, it will help address the negative aspects of climate change through vehicle emission reduction.
The government believed that it would create employment generation through new investments. It will further reduce the oil import bill.
Incentives
The government has offered tax incentives for setting up a manufacturing plant. It reduces general sales tax to 1 percent for 2-3 wheelers.
The government exempted registration and token tax for 2-3 wheelers. It reduced toll tax to 50% for EVs.
However, the government decided that it would pass on the benefits of EV policy to existing manufacturers.
Import of 2-3 wheelers
The government also reduced customs duty on importing new EVs (2-3 wheelers) in CBU conditions from 50 to 10 percent. It capped the import of 200 units.
The government reduced custom duty to 1 percent to local manufacturers on import of entire CKD. It reduced sales tax to 1 % at sales and waived off at the import stage. The government encouraged the State Bank of Pakistan to extend the financing for green investments.
