Government announces 45% reduction in electricity tariffs for EV charging stations

Islamabad – In a significant move to promote electric vehicles (EVs) in the country, the Federal Minister for Energy, Sardar Awais Ahmad Laghari, announced that the power division has slashed electricity tariffs for EV charging stations by 45 per cent. The new tariff, set at Rs. 39.70 per unit, marks a substantial reduction from the previous rate of Rs. 71 per unit.

Addressing a press conference, Minister Laghari explained that this reduction in electricity prices is part of the government’s efforts to incentivise the transition towards electric vehicles. Under the leadership of Prime Minister Shehbaz Sharif, the government has introduced a special concessional electricity rate for EV charging stations. This move is the first of its kind in Pakistan and aims to make electric mobility more affordable and accessible.

The minister highlighted that for the first time in Pakistan’s history, the per-unit electricity cost for electric vehicles has been reduced by 44 per cent. Alongside this, regulations for the establishment of the country’s first electric vehicle charging stations and battery replacement points have also been implemented. These regulations are managed by the National Energy Conservation Authority (NEECA), a subsidiary of the Power Division, and have been officially notified through a regular gazette.

The government’s initiative is seen as a major step towards achieving the goal of 30 per cent electric vehicle inclusion by 2030. The new regulations not only provide a platform for establishing EV charging infrastructure but also allow for swift registration and approval for business operations related to charging stations. The registration process has been streamlined, and applicants can now complete the registration in just 15 days by visiting the website.

Minister Laghari also revealed that the Power Division’s efforts have already started yielding positive results, as the circular debt in the power sector has decreased to Rs. 2,381 billion from Rs. 2,393 billion during the period from July to November 2024. The recovery rate in the same period has improved significantly, reaching 96 per cent, owing to the government’s prudent policies.

In another development, the Power Division has proposed revised agreements with 18 additional Independent Power Producers (IPPs), which are currently under review by the federal cabinet.

The Cabinet Committee on Energy has also approved the provision of single-point power supplies to industrial estates and special industrial zones, in response to complaints regarding the new connection and billing processes.

Minister Laghari emphasised that the shift towards electric vehicles would not only reduce fuel costs but also generate substantial savings in foreign exchange. The conversion of motorcycles, of which there are currently 10 million in the country, to electric technology is expected to save $6 billion annually in fuel costs. Similarly, electric rickshaws are expected to lower travel costs within cities while reducing harmful emissions, thus contributing to better air quality.

The new regulations and initiatives are seen as a vital step toward the establishment of a sustainable and profitable electric vehicle ecosystem in Pakistan. The concessions in electricity tariffs, along with simplified regulations for setting up charging stations, are expected to create significant business opportunities, generate jobs, and strengthen the national economy.