ISLAMABAD: A well-planned shift to Hybrid Electric Vehicles (HEVs) can help Pakistan to reduce its hefty oil import bill and decrease its current account deficit.
The current account deficit has been exacerbated by the hefty oil import bill. The import of oil is on the rise owing to an increase in demand for gasoline in the country. The transport sector is the largest consumer of oil and it can reduce the consumption of fuel by adopting modern technology.
An increase in the number of automobiles in Pakistan has also boosted the demand for imported oil. Even the recent record hike in the prices of petroleum products could not reduce the demand for vehicles as new automobile companies have continued to establish manufacturing units in the country.
A total of 191,237 cars were sold in the country in the current fiscal compared to 126,679 the previous financial year. The rise in the sale of cars consequently raises oil demand, which ultimately leads to an increase in the current account deficit.
According to experts, it is the need of the hour to reduce the demand for oil in the country, which will ultimately lower the current account deficit, because oil is on the top of Pakistan’s import bill list.
Developed countries have shifted their automobile industry from the traditional gasoline-run cars to Electric Vehicles (EVs) and Hybrid Electric Vehicles (HEVs) to reduce the consumption of fuel. However, Pakistan is not in a position to shift its whole automobile industry to EVs because it needs a lot of investment to set up manufacturing plants and charging stations all over the country.
On the other hand, Hybrid Electric Vehicles (HEVs) are powered by an internal combustion engine and one or more electric motors, which use energy stored in batteries. Regenerative braking and internal combustion engines are used to recharge the battery of HEVs.
Toyota hybrids are among the most fuel-efficient cars in their class. These vehicles use no fuel at all for a short distance at a slow speed or for stop-and-go traffic as they are run by their hybrid batteries and electric motor.
Muhammad Shahbaz, owner of a hybrid car, told WealthPK that the hybrid vehicles were fuel-efficient and environment-friendly. As they combine fuel with electric capabilities, they have lower emissions than the regular petrol vehicles and consume less fuel. Hybrid vehicles are perfect for city driving.
These energy-efficient vehicles also have better gas mileage, offering the power of a regular engine. The hybrid cars also have regenerative braking, so every time the brake is applied, it helps to recharge the battery.
Pakistan still has not increased the demand for hybrid cars due to their higher prices and high custom charges. Toyota Aqua is a 1500cc car at a price of Rs4.5 million. However, the Federal Board of Revenue has given around 50 percent exemption on the imports of hybrid cars with an engine capacity up to 1800cc. But these cars are still beyond the budget of local customers.
Pakistan needs to convince big firms like Toyota and Honda to start manufacturing Hybrid Electric Vehicles within the country to minimise their production cost, which will ultimately decrease their prices.
