The federal government has announced a significant 45% reduction in electricity tariffs for electric vehicle (EV) charging stations, cutting the rate from Rs71 to Rs39.70 per unit. This initiative aims to promote the adoption of EVs across Pakistan.
The announcement was made by Federal Minister for Energy Awais Leghari during a press conference in Islamabad on Wednesday. The minister emphasized that the government is committed to fostering EV infrastructure, with new regulations ensuring licenses for charging stations are issued within 15 days.
“We plan to establish charging stations in every street and neighborhood,” said Leghari, highlighting the broader strategy to shift reliance from petroleum products to eco-friendly alternatives. He urged citizens to transition to EVs, citing that e-motorcycles are three times cheaper to operate than petrol-based ones.
Leghari also revealed plans to finance the conversion of petrol-powered motorcycles and rickshaws to electric, aiming to make EVs more accessible to the public. He credited the Special Investment Facilitation Council (SIFC) for its instrumental role in achieving this milestone.
In terms of energy sector reforms, Leghari reported a Rs12 billion reduction in circular debt between July and November, alongside improved performance of distribution companies (Discos). Losses have been capped at Rs170 billion in the past five months compared to Rs223 billion last year. He assured that industrial estates will have uninterrupted electricity supply and refuted claims of prolonged loadshedding, attributing outages only to high-loss areas.
Leghari stated that the government has renegotiated agreements with three Independent Power Producers (IPPs), saving Rs137 billion annually and reducing the overall burden by Rs1,457 billion. He emphasized the importance of governance reforms to eliminate political interference in Discos.
Economic and Environmental Benefits
Pakistan currently spends $6 billion annually on fuel imports for motorcycles and three-wheelers. The shift to EVs, supported by reduced charging tariffs, is expected to significantly lower costs and environmental damage.
Leghari noted that a meeting chaired by the prime minister reviewed the environmental impact of petrol and diesel use, urging international contributions to green climate finance. “We need global support to finance e-bikes and promote sustainable transportation,” he said, expressing hope for fulfilling global green financing commitments.
