Mobile Device Manufacturing Policy as well as the Electric Vehicle Policy have been approved by The Economic Coordination Committee (ECC).
On Wednesday, Finance and Revenue Minister Dr. Abdul Hafeez Shaikh supervised the ECC meeting where the Cabinet approved both the ‘Mobile Device Manufacturing Policy’ and the ‘Electric Vehicles Policy’ [for two-three wheelers and heavy commercial vehicles].
According to the press statement issued by the Finance Ministry, “After due deliberation, the forum approved removal of withholding tax of 4pc on manufacturing to retailers of locally manufactured phones to incentivize the sector,” the statement read.
“Moreover, removal of sales tax on locally manufactured phones was also approved in principle and modalities in this regard would be worked out in consultation with the Finance Division.”
The announcement regarding the approval of the Electric Vehicle Policy was made by Minister for Industries and Production Hammad Azhar as he took to Twitter to break the news.
Today, ECC ratified the Electric Vehicle policy for 4 wheelers. It will prove instrumental in rationalising costs of purchasing, manufacturing & promoting use of electric vehicles in Pakistan.— Hammad Azhar (@Hammad_Azhar) December 16, 2020
ECC also ratified removal of certain anomalies in Mobile Phones Manufacturing policy.
Apart from the ratification of electric vehicle policy for cars and Mobile Device Manufacturing Policy, ECC also approved the grant of:
- Rs 219.300 million technical supplementary grant (TSG) for the operationalization of the newly established Isolation Hospital and Infections Treatment Centre, Islamabad
- Rs 305.462 million TSG to payoff Pakistan’s annual contribution to World Health Organization (WHO)
- Rs 106.775 million to the ICT Administration for various projects
- Rs 706.82 million for FATA, temporary displaced persons, Emergency Recovery Project, NADRA
- Rs 278 million as annual contribution of Pakistan to United Nations Population Fund (UNFPA), Partners in Population and Development (PPD) and Family Planning Association of Pakistan (IPPF-FPAP) for FY19, FY20 & FY21
- Rs 53.10 million for procurement of medical equipment, machinery and medicines to combat Covid-19.