EV makers using substandard batteries
Electric vehicle manufacturers in Pakistan are found to be using substandard and low-quality batteries, which has stoked serious concerns among government circles.
At present, Pakistan is witnessing a boom in electric vehicles' demand and sales following the US-Israel-Iran war and the resultant massive increase in oil prices. Electric vehicles are also necessary to meet the country's clean mobility ambitions and contribute to global environmental protection goals.
The government has decided to introduce a strict testing mechanism to check the quality of batteries being used by auto assemblers to power electric vehicles.
The issue was taken up in a recent meeting of the executive committee of the National Coordination and Management Council (NCMC). The council expressed deep concern and directed the bodies concerned to introduce a new mechanism for safety and quality checks related to batteries being installed in electric vehicles.
The executive committee meeting was held under the co-chairmanship of the federal minister for economic affairs and the national coordinator of NCMC and was attended by relevant members, other stakeholders and representatives of the Special Investment Facilitation Council (SIFC) Secretariat.
During the huddle, the NCMC observed that certain EV manufacturers were not adequately adhering to the prescribed quality and safety standards, particularly with regard to batteries. It was emphasised that the use of substandard or uncertified batteries would pose serious risks to consumer safety, vehicle performance and the credibility of EV ecosystem.
In that regard, the NCMC directed that the Engineering Development Board (EDB), in collaboration with the National Energy Efficiency and Conservation Authority (Neeca) and relevant stakeholders, should develop a robust inspection, testing and verification mechanism to ensure compliance with the requisite quality, safety and performance standards. The mechanism may include certification requirements, periodic inspections and compliance monitoring of manufacturers and importers. Strict enforcement measures against non-compliant entities may also be instituted.
The Ministry of Industries & Production, EDB and Neeca were given directives to start work immediately on establishing a testing mechanism that would set international standards for EVs.
OMC violations
During the NCMC meeting, it was highlighted that oil marketing companies (OMCs) had failed to comply with the directives of regulators and even challenging those instructions in courts.
The government and the regulator are struggling to ensure oil supplies during the ongoing regional crisis caused by the Middle East war when the Strait of Hormuz – a vital shipping artery – stays closed. But the local OMCs are allegedly involved in malpractices and some of them have initiated legal battles against the regulator.
As per Oil and Gas Regulatory Authority (Ogra) regulations, the OMCs are obligated to comply with the regulator's directives and ensure adherence to all the prescribed regulatory requirements. During the meeting, Ogra pointed out that several OMCs failed to meet their allocated PRM (product review meeting) quotas, posing a serious challenge to the national fuel supply chain and energy security framework.
Ogra further apprised meeting participants that while show-cause notices had been issued to the non-compliant entities, such actions were frequently challenged in courts, leading to prolonged pendency and limiting effective enforcement. In order to strengthen the regulatory regime and institutional effectiveness of Ogra, the NCMC emphasised the need for taking concrete corrective measures and early plugging of loopholes within the existing rules and regulations.
Accordingly, it was decided that Ogra, in collaboration with the relevant stakeholders and with the active involvement of NCMC, would constitute a committee mandated to examine the existing regulatory framework and recommend appropriate amendments to enhance enforceability and fill the prevailing gaps. Ogra shall formally constitute the committee and submit a progress report.
It also gave directives that Sui Northern Gas Pipelines Ltd (SNGPL) would determine the availability of gas for compressed natural gas (CNG) stations in Khyber-Pakhtunkhwa upon revisiting and ascertaining the remaining volumes after consumption by power plants.