By Ayesha Saba

ISLAMABAD, July 4 (INP-WealthPK): The Pakistan governments is encouraging the use of electric vehicles (EVs) in order to protect the environment and lower the country's dependence on imported oil.

In this regard, a Chinese automaker, Gauss Auto Group, has announced a plan to establish an electric vehicle production plant in Karachi Special Economic Zone (SEZ).

According to information provided by the Board of Investment (BOI), Gauss Auto is a company that specializes in resource integration as well as the invention and development of vehicles. It would set up the plant near Port Qasim, Karachi on about 1,000 acres of land through a joint venture (JV) with AKD Group Holdings (Pvt) Limited.

An official of the BOI, who requested anonymity, said while talking to WealthPK that the transition of the transport sector towards electrification is the need of hour.

“Chinese investors have always indicated an interest in exploring more investment opportunities in Pakistan. Electric vehicles are a significant area of cooperation between the two countries. As the demand for EVs is increasing in Pakistan, we welcomed Chinese manufacturing companies to enter the Pakistani market,” said the official.

“The largest source of foreign direct investment (FDI) in Pakistan is China, which is an evidence that Chinese investors are eager to explore additional opportunities in Pakistan. Since the establishment of the China-Pakistan Economic Corridor (CPEC), the FDI inflow from China has been consistently on the higher side,” he said.

Shedding light on the BOI policy, the official said all sectors are open for investments. Under the BOI policy, foreign investors are granted the same status and facilities as local investors.

“Pakistan has adopted a very liberal investment policy that imposes no restriction on remitting capital and profits and dividends. 100% foreign equity and 100% repatriation of profits are allowed. Exemption of taxes on import of capital goods is available. Establishment of branch and liaison offices is also allowed,” said the official.

“For facilitation of investors, the BOI is the responsible agency which provides all-out support. As such, no major hurdles are faced by the Chinese investors, and if any, these are handled by the BOI, which has a dedicated Project Management Unit established for the facilitation of Chinese/CPEC investors with Chinese interpreters to address the language barriers,” the official stated.

Electric vehicles have become an integral part of the modern world. The potential of investment in EVs to Pakistan's transportation infrastructure can open up an entirely new industry and create many jobs. The record-high price of petrol will stimulate consumer demand for EVs. It also has the potential for stimulating the economy. Under the Pakistan Electric Vehicle Policy 2020-25, the country aims to increase the market share of EVs in Pakistan to 30% by 2030 and 90% by 2040.

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