MoI&P makes clever move to get EV policy under control

In a clever move, Ministry of Industries and Production (MoI&P) has approached the cabinet to get control of Electric Vehicle (EV) Policy, aware that the Ministry of Climate Change (MoCC) is tabling a similar proposal soon for approval, well informed sources in Engineering Development Board (EDB) told Business Recorder.
Both the ministries are fighting with each for the last 8 to 9 months, before and after the approval of EV policy by the Cabinet. Sharing the details, sources said, Rules of Business, 1973 (RoB) framed under Article 90 and 99 of the Constitution provide mechanism for the smooth and lawful inter-ministerial/divisions working in the federal government.
Under Rule 15(2) of the schedule II of the RoB, the subject of formulation of industrial policy has been allocated to Industries and Production Division. On the strength of these rule, Industries and Production Division has formulated different industrial policies in the past and Automotive Development Policy (ADP) 2016-21 is an example in this regard.
ADB 2016-21 was formulated in consultation with all the private and government stakeholders with total consensus. Resultantly, ADP 2016-21 has emerged as a successful initiative of the federal government with the joining of 18 new automotive assemblers in the auto sector of the country.
Following are some new entrants who have launched their vehicles with fresh investment along with transfer of technology: (i) Kia Lucky Motors Company; (ii) Hyundai Nishat Motor Company ;(iii) United Motors ;(iv) Regal Automobile Industries Limited;(v) Foton JW Auto Park Ltd and ;(vi) Master Motors Ltd.
MoI&P is of the view that in breach of the legal position, Ministry of Climate Change moved a proposal for formulation of EV policy and approval of Prime Minister was conveyed to MoI&P on May 20, 2019. Subsequently, MoI&P took up the matter with the Cabinet Division through a letter on July 26, 2019 for clarification/ opinion on the issue in accordance with the RoB.
Cabinet Division in its letter of August 21, 2019 conveyed its opinion in the following terms: the allocated business of the MoCC does not relate to formulation of any industry related policy. Though the RoB are silent regarding Electric Vehicle Policy as a subject, however, it is more akin to the functions assigned to the MoI&P under industrial policy. Hence, the viewpoint of MoI&P is endorsed.
In the light of the Cabinet Division's advice and to align the EV policy with the already federal cabinet's approved ADP 2016-21, MoI&P held several meetings with the relevant Associations and stakeholders including MoCC, Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), Pakistan Automotive Manufacturers Association (PAMA), Auto Industry Development Committee (AIDC) etc. throughout Pakistan to avoid confusion.
Earlier, the PAMA had shown its apprehensions, both in writing and discussions during different meetings, with the suggestion to transfer the EV policy formulation work to the MoI&P.
The MoI&P has also accused MoCC of presenting EV policy to the cabinet for approval in clear violation of stated facts and clearly laid down RoB and without consultation with the MoI&P.
According to sources, in the cabinet meeting in which EV policy was presented , Advisor to the Prime Minister on Commerce, Industries and Production and Investment was not present to give his viewpoint.
Realizing the shortcomings in the draft summary, the cabinet approved the draft EV policy with the following conditions ;(i) MoCC shall set up an inter-ministerial committee to finalize further details including the phrasing/ timeframe for various actions;(ii) the committee will also hold consultations with the existing automobile manufacturers to address their concerns, if any and ;(iii) the incentive structure proposed in the policy be submitted for consideration of the ECC.
The MoI&P has also forwarded a DO letter to MoCC with the request to transfer policy formulation work to it in accordance with the Cabinet Division advice and RoB, however, MoCC has reiterated its earlier position.
The MoI&P has also claimed that EV is a sub-sector of the large scale automotive sector and any mishandling may derail the progress of conventional auto industry in Pakistan developed with careful legal intervention through ADP.