THE government has taken a commendable step by announcing a New Energy Vehicle policy aiming to ensure that by 2030, 30pc of all cars and 50pc of all motorcycles and three-wheelers sold will be electric-powered. Prefaced with a sobering note on the impact of climate change on Pakistan and the threats posed by global warming to the world in general, the policy seeks to curb emissions from fossil fuel-burning vehicles for a cleaner environment. It is encouraging to note that the authorities see NEVs as a multifaceted opportunity: for example, they are not only hoping that replacing fossil fuel vehicles with electric vehicles will help cut down on issues like persistent smog but will also yield benefits in terms of lowering demand for oil imports — a significant portion of our import bill. Similarly, the authorities also hope that having more NEVs on the roads will boost demand for electricity, which will help reduce the burden of idle capacity payments on the national exchequer.

The policy has, unsurprisingly, upset the entrenched players in the local vehicle industry, who must be worried that it may dent the sales of automobiles they have been manufacturing with very little innovation for the past many years. In the interests of fairness, the government should extend them reasonable incentives to upgrade their production facilities and technologies so that they may transition to NEV production, but this must not be done at the cost of delaying the implementation of its policy. Pakistan cannot allow itself to be distracted by attempts to let things continue as they are. Powerful lobbies have too often managed to derail even the best-intentioned plans to improve the lives of ordinary Pakistanis, and their concerns must be weighed against the greater good of the people. It is good that the government has woken up to the NEV opportunity, and it must implement its policy soon.

Published in Dawn, November 22th, 2024