Cabinet Division settles dispute over mandate of Electric Vehicle Policy

Says industrial policy does not relate to climate change ministry

ISLAMABAD: The Cabinet Division has stepped in to end the row between ministries of climate change and industries and production over a mandate of formulating Electrical Vehicle Policy, saying that the business of climate change does not relate to formulating industry-related policy.

Following this development, the Ministry of Industries and Production on Thursday notified a committee to prepare Electrical Vehicle Policy comprising representatives of science and technology, Ministry of Commerce, climate change, Federal Board of Revenue, Board of Investment, Engineering Development Board and Ministry of Industries and Production.

The Cabinet Division had pointed out that under schedule - 11 to the Rules of Business, the federal government functions; 'National Industrial Planning and Coordination' and 'Industrial Policy' are allocated to Ministry of Industries and Production. The allocated business of the Ministry Of Climate Change Does not relate to formulation of an industry related policy.

Though the rules of business are silent regarding Electrical Vehicle Policy as a subject, however, it is more akin to the functions assigned to the industries and production under 'Industrial Policy'. In this case, since the Climate Change Division has made marked advancement in terms of drafting the policy, hence it would be fitting that the Industries and Production Division while formulating policy, carries out necessary consultation with the Climate Change Division in order to ensure that the policy meets international environment standards.

The auto sector falls under the mandate of the Ministry of Industries and Production; however, the Ministry of Climate Change had exceeded its obligation and prepared a draft for the Electrical Vehicle Policy. It had also submitted the draft to the cabinet for approval. But the cabinet returned it saying that the issue does not fall under the climate change ministry.

In this regard, Adviser to the Prime Minister on Commerce Abdul Razak Dawood had a consultative meeting with Adviser to the Prime Minister on Climate Change Malik Amin Aslam on Wednesday. The meeting concluded on the principle that the Ministry of Industries and Production will formulate a comprehensive E-vehicle policy that addresses environmental issues and also promotes healthy competition in the auto-sector along with viable options for consumers at each price point.

Dawood stressed upon the importance of controlling emissions for better environment and to embark on a journey towards clean and green growth. He said that the upcoming policy will be implemented under the broader auspices of the Auto Development Policy (ADP) 2016-21 after consultation with concerned stakeholders. The aim is to also incorporate global best practices, aligned with the best interest of Pakistan's industry, to strengthen the country's industrial base, he added. The adviser said that the local industry would be given protection in the electrical vehicle policy.

However, Aslam had earlier held a meeting with Indus Motor Company CEO Ali Asghar Jamali and said that the auto policy 2016-21 does not meet requirements of electrical vehicles and therefore a new auto policy would be introduced. However, in the meeting held on Wednesday, the commerce adviser said that the policy on electrical vehicle would also be made under the ambit of the existing auto policy.