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Tuesday January 28, 2025

EV charging stations tariff cut by 44%

Power tariff for charging stations has been reduced from Rs71.10 per unit to Rs39.70 per unit

By Ag App & Israr Khan & Khalid Mustafa
January 16, 2025
An electric vehicle charging station is seen at the Volkswagen display during the media day at the Canadian International AutoShow in Toronto, Ontario, Canada, February 14, 2019. — Reuters
An electric vehicle charging station is seen at the Volkswagen display during the media day at the Canadian International AutoShow in Toronto, Ontario, Canada, February 14, 2019. — Reuters

ISLAMABAD: In a significant step towards promoting the use of green energy to cut the carbon footprint in the country and support the global climate goals, Prime Minister Shehbaz Sharif Wednesday announced 44 percent reduction in the power tariff for the electric vehicle (EV) charging stations.

The power tariff for the charging stations has been reduced from Rs71.10 per unit to Rs39.70 per unit. The move aims to attract investment, reduce reliance on imported fuel and tackle the country’s escalating air pollution crisis.

“EVs are the right step to address air pollution and combat climate change,” he said while chairing a special meeting on the EV policy. “Scaling up EV adoption will not only reduce our fuel import bill but also preserve the environment.”

Federal Minister for Power Awais Ahmed Khan Leghari elaborated on the policy during a press conference, emphasizing the economic and environmental benefits of the decision. “Pakistan spends $6 billion annually on importing petrol and diesel,” Leghari said. “By reducing EV charging tariffs by 44%, we are making it easier for the public to transition to cleaner, more affordable electric vehicles.”

The tariff cut is expected to significantly lower the operational costs for motorcycles, three-wheelers, small cars, and other EVs. According to Leghari, the cost of running an electric motorcycle will drop by three times to just Rs33, compared to Rs100 for a petrol-powered bike. It is estimated that there are currently 10 million motorcycles in the country, consuming $6 billion annually on fuel. Converting these motorcycles to electric technology, which costs an average of PKR50,000, will enable a return on investment within three to four months while saving billions of dollars in foreign exchange.

Similarly, the use of electric technology in three-wheeled vehicles (rickshaws) is expected to significantly reduce urban travel costs, leading to lower fares and helping to curb harmful emissions, thereby addressing air pollution. The reduction in travel costs will also positively affect urban goods transportation, potentially reducing the prices of essential commodities.

Permits for the EV charging stations or battery-swapping points can now be secured within 15 days via an online portal of the Power Division’s subsidiary Neeca. The government has also introduced regulations to ensure safe and efficient operation of EV charging stations.

The minister highlighted that the reduction in electricity tariffs for EV charging stations was part of broader reforms aimed at lowering power costs. The broader policy outlines ambitious goals, including reducing dependence on fossil fuels, mitigating harmful emissions, and fostering local and foreign investment. It aims to achieve 30 percent EV adoption by 2030, creating business opportunities and generating employment.

The establishment of charging stations and battery-swapping points across neighbourhoods will also create new business opportunities. To ensure a competitive market and facilitate both local and foreign direct investment, these regulations have been simplified, with the registration fee set at only PKR50,000. These regulations are estimated to help achieve a target of 30% EV adoption by the year 2030. The regulations support five levels of charging technology, providing equal opportunities for global and regional EV manufacturers. Special attention has been given to the safety and maintenance of charging stations and battery swapping points, with regular monitoring and audits planned.

Leghari said, “We consider this an international-level achievement,” and called on international organizations, including the World Bank and USAID, and developed nations committed to green climate financing, to play a proactive role in supporting Pakistan’s transition to electric vehicles (EVs).

“We hope that these institutions will not merely appreciate our efforts verbally but will actively contribute by providing green financing to our motorcycle and rickshaw owners. Special concessions for green financing could help millions of motorcycle and rickshaw owners switch to electric vehicles, cutting reliance on fossil fuels and supporting Pakistan’s climate goals,” the minister said.

Regarding K-Electric, the government has shared its recommendations with the regulator. “We hope the regulator will ensure justice and avoid burdening any party unfairly,” the minister emphasized, adding that consumer rights remained the top priority.

APP adds: Meanwhile, chairing a meeting to review the measures against human smuggling, Prime Minister Shehbaz Sharif directed all the relevant institutions to play an active role in curbing human smuggling and take strict legal action against the perpetrators defaming the country through their heinous business.

He passed instructions for addressing the shortage of manpower in the Federal Investigation Agency (FIA) and ensuring effective screening of those travelling abroad at the airports. He also directed the Ministry of Information and Broadcasting to run an awareness campaign against illegal foreign travel and human smuggling. He also called for Interpol’s support for the extradition of the most wanted criminals involved in human smuggling.

Shehbaz was told that several human smugglers had been arrested from June 2023 to December 2024 and many government officials had been dismissed for facilitating the crime. The prime minister was apprised of the punitive measures being taken against the government officials involved in human smuggling. Besides, the assets of human smugglers worth Rs500 million had been confiscated and a process was underway for more such confiscations. He was also told that special prosecutors had been appointed to prosecute the human smugglers.