Pakistan takes wise decision to promote production of new energy vehicles

Saiyan0321 · Dec 27, 2020

Pakistan takes wise decision to promote production of new energy vehicles

New energy vehicles have become main direction of global automobile industry transformation and development and an important engine to promote a sustainable growth of world economy

BEIJING - Both China and Pakistan are big stakeholders of automobile production and consumption and it would be a positive decision for Pakistan to promote production of new energy vehicles. Visiting professor at Southwest University of Political Science and Law, Cheng Xizhong said, “With the continuous advancement of the construction of China-Pakistan Economic Corridor (CPEC) and Special Economic Zones (SEZs), China and Pakistan can carry out close cooperation,”. In his article published by China Economic Net (CEN), he opined that Pakistan may boldly introduce China’s advanced production technology of new energy vehicles, gradually accelerate the local production and sales of new energy vehicles. Therefore, he said, it would help inject new impetus into the rapid development of the national economy.

Referring to media reports, he said federal cabinet of Pakistan has granted massive tax exemptions to facilitate promotion of electric vehicles (EVs) in the country. The summary forwarded by Pakistani Ministry of Industries was approved by the cabinet, allowing one percent sales tax for locally-made EVs up to 50 kwh and light commercial vehicles (LCVs) up to 150 kwh.

The cabinet also capped the duty on import of charging equipment at one per cent. At the same time, the EVs would be exempt from federal excise duty (FED), whereas import of machinery for manufacturing of these vehicles would be duty-free. Pakistani government has further removed additional customs duty (ACD). As per policy, there would be only one percent tax on import of EV parts for manufacturers. Apart from the tax facilities, Pakistani government has also waived registration and annual renewal fee for EVs. In October this year, Chinese government issued New Energy Vehicle Industry Development Plan (2021-2035). According to the plan, development of new energy vehicles was the only way for China to become a powerful automobile country from a big automobile country. It was also a strategic measure to deal with climate change and promote green development, he shared.

Cheng Xizhong, also a senior fellow of the Charhar Institute said that since 2012, China’s new energy vehicle industry has made great achievements and become one of the important forces in the development and transformation of the world’s automobile industry.

Currently, a new round of global scientific and technological revolution and industrial transformation is developing vigorously. The integration of automobile and related technologies in energy, transportation, information and communication is accelerating. The going trend of automobile industry is electrification, networking and intelligence. In recent years, the world’s major automobile powers have strengthened strategic planning, increased R&D investment, and improved industrial layout.

New energy vehicles have become the main direction of global automobile industry transformation and development and an important engine to promote a sustainable growth of the world economy.

With years of continuous efforts, the technical level of China’s new energy vehicle industry has been significantly improved, and the competitiveness of enterprises has been greatly enhanced.

Since 2015, China’s production and sales of new energy vehicles have ranked first in the world for five consecutive years, and the industry has entered a new phase of superposition, convergence and integration. China is committed to seizing the strategic opportunities, consolidating the good momentum, giving full play to the advantages in infrastructure, information and communication and other fields, continuously improving the core competitiveness of the industry, and promoting the high-quality and sustainable development of the new energy vehicle industry, he said.