The Pakistani government has announced a significant 45% reduction in electricity tariffs for electric vehicle (EV) charging stations, aiming to improve the country’s EV infrastructure.
Federal Minister for Energy, Awais Ahmad Leghari, revealed the decision at a press conference on January 15, unveiling the country’s first electric vehicle charging policy, which will reduce the tariff from Rs71.10 to Rs39.40 per unit.
Pakistan lacks a robust charging network for electric vehicles, with major cities like Karachi and Lahore having only a handful of charging stations.
Leghari emphasized the government’s commitment to making electric vehicles more accessible, noting that high electricity costs and the absence of regulations had hindered the establishment of charging stations nationwide.
The new tariff is expected to facilitate the setup of more charging stations, including in local shops.
In addition to the tariff reduction, Leghari highlighted that approvals for setting up charging stations would now be expedited through an online portal, with a turnaround time of just 15 days.
He also called for international financial institutions to support Pakistan with green financing, suggesting that this initiative could result in some of the lowest electricity rates in the region for consumers and industries.
Prime Minister Shehbaz Sharif praised the decision, asserting that it would attract more investment in the electric vehicle sector and help conserve foreign exchange by reducing fuel imports.
The government also recently approved revised agreements with 14 Independent Power Producers (IPPs), which could further lower electricity prices by Rs10 to Rs11 per unit, potentially saving Rs802 billion.
This initiative is seen as a significant step towards promoting electric vehicle usage in Pakistan.
