Reduction in tariffs from Rs70 to Rs40 per unit
will attract investors and industry stakeholders to
explore greater opportunities in the EV sector
Associated Press of Pakistan
Islamabad: Prime Minister Muhammad Shehbaz Sharif has praised the Rs30 per unit reduction in electricity tariffs for electric vehicles (EVs) as a groundbreaking move to accelerate the adoption of emission-free, eco-friendly vehicles in Pakistan.
Key Highlights of the Meeting
During a high-level meeting on the Electric Vehicle Policy, the Prime Minister lauded Power Minister Sardar Awais Ahmed Leghari and his team for devising a plan to support EV manufacturers in launching affordable, charge-based vehicles.
“The reduction in tariffs from Rs70 to Rs40 per unit will attract investors and industry stakeholders to explore greater opportunities in the EV sector,” the Prime Minister stated.
Combating Climate Change and Pollution
The Prime Minister emphasized that EVs are essential for reducing air pollution and combating climate change. Pakistan, he noted, has actively engaged in global climate discussions, including COP-27 and COP-29, to highlight its stance on addressing climate-induced disasters.
“Scaling up EV adoption will help mitigate air pollution, reduce fuel import costs, and preserve the environment,” he added.
Economic and Commercial Benefits
Shehbaz Sharif highlighted the economic benefits of the reduced tariff, which aims to make EV production and operation more viable. He stressed the importance of offering subsidized electricity rates to ensure the growth of this critical sector. Globally, he noted, EV industries receive special incentives that benefit both manufacturers and consumers.
EV Policy Overview
Power Division officials provided an overview of the updated policy, revealing that EV charging stations will now be charged at a reduced tariff of PKR 39.70 per unit, down from PKR 71. This reduction could lower travel costs by up to three times compared to petrol and diesel-powered vehicles.
Policy Goals and Implementation
The revised policy aims to:
- Reduce dependence on fossil fuels and save foreign exchange.
- Mitigate air pollution and harmful emissions.
- Create business opportunities and attract local and foreign investments.
- Generate employment and boost the economy.
To encourage investment, the policy simplifies regulations for EV charging stations and battery replacement points. Licenses for charging stations will now be issued within 15 days, and NEPRA will oversee safety inspections and foster a competitive market environment.
Participants
The meeting was attended by Federal Minister for Economic Affairs Ahad Cheema, Federal Minister for Industries and Production Rana Tanveer Hussain, Federal Minister for Information and Broadcasting Attaullah Tarar, Federal Minister for Power Sardar Owais Ahmad Leghari, and senior government officials.
