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Islamabad: In a significant step to promote electric vehicle (EV) adoption and strengthen the country’s EV infrastructure, the government of Pakistan has announced a 45% reduction in electricity tariffs for EV charging stations. During a press conference on Wednesday, Federal Minister for Energy Sardar Awais Ahmad Leghari announced a reduction in the tariff, bringing it down from Rs71.10 per unit to Rs39.70 per unit.
“This reduction is a critical step towards making EVs more accessible to the public,” said Leghari. “The high cost of electricity and a lack of regulations have hindered the expansion of charging stations. With this move, we aim to encourage the establishment of EV charging stations, even in small local shops.”
To facilitate the process, the minister announced that approvals for installing charging stations would be granted within 15 days through an online portal. The government has also provided a standing regular gazette notification to operationalize the decision.
Leghari underscored the need for international financial institutions to support Pakistan through green financing. He noted that the tariff reduction positions Pakistan capable of providing some of the most competitive prices of electricity in the region, to the advantage of industries, and consumers.
New regulatory frameworks that have also been put into place under the National Energy Conservation Authority include the provisions for setting up of EV charging and battery replacement stations nationwide. The government’s Electric Vehicle Policy 2019-2024 aims to substitute 30 percent of vehicles with electric power by 2030 majoring on environmental challenges and reducing reliance on imported fossil fuels.
Economic and Environmental Benefits
Switching motorcycles to electric technology at an average cost of Rs 50,000 could save the country $6 billion annually on fuel imports. Besides cutting the foreign exchange dependency, the adoption of the policy will help in improving the quality of air in the urban areas and bearing the impacts of climate change.
Federal Minister for Planning, Development and Reforms Prof Ahsan Iqbal also welcomed the initiative saying that the global trend of shifting a towards the electric vehicle is starting now on the right direction. During a meeting with stakeholders at the policy-making level, he focused on the rationale of adopting electric vehicles and instructed the Ministry of Power to start public sensitisation across the country.
Power Sector Reforms
The energy sector has also undergone certain reforms, and the recovery rate from July to November 2024 stands at 96 % which was not there in the energy sector in the same period in 2023. Meanwhile, circular debt has come down to Rs 368 billion from a position of Rs 376 billion, an improvement of Rs 12 billion. It must also be noted that the losses of DISCOs have come down to Rs170 billion from Rs223 billion.
In another important decision, federal cabinet has approved the new Agreements with 14 independent Power Producers (IPPs) to decrease the burden of Rs. 802 billion in terms of profit and referred costs. They are expected to reduce electricity tariffs for consumers by Rs 10 to Rs 11 per unit.
With these measures, the government expects to ensure energy security in Pakistan, encourage sustainable approaches, and make Pakistan a showcase for green energy.
