Islamabad (Web Desk): Federal Minister for Energy Sardar Awais Ahmad Khan Laghari on Wednesday announced a substantial reduction in electricity rates for electric vehicle (EV) charging stations, cutting the tariff by 45%.
Previously, the cost per unit for these stations stood at Rs71, but with the new policy, it will now be Rs39.70 per unit.
Addressing a press conference in Islamabad, the minister said that the decision, made under the leadership of Prime Minister Shehbaz Sharif, marks a significant step in Pakistan's transition toward electric vehicles.
Along with the reduction in rates, the government also introduced new regulations to establish electric vehicle charging stations and battery replacement points, the first of their kind in the country.
The newly established rules will make it easier for businesses to set up EV stations and battery replacement points by allowing them to complete the registration process within 15 days.
To streamline the process, the Power Division's subsidiary, NEECA, has introduced a one-window registration system, which can be completed online for a fee of Rs50,000.
The initiative is designed to encourage both domestic and foreign investments, as it provides equal opportunities to manufacturers of electric vehicles globally. The government aims to achieve 30% electric vehicle adoption by 2030 through these measures.
The minister emphasized the broader economic and environmental benefits of this policy shift.
He pointed out that converting the 10 million motorcycles currently in Pakistan to electric would not only reduce the annual fuel expenditure of $6 billion but would also enable owners to recover their investment within a few months through savings on fuel.
Similarly, the shift to electric technology in rickshaws is expected to lower transportation costs in urban areas, benefiting both passengers and businesses by reducing fares and curbing air pollution.
The the introduction of these charging stations and battery replacement points presents a significant business opportunity.
The the government's concessional electricity rates make it more affordable to establish such stations, and the simplified regulatory process allows for quicker business setup.
This initiative is expected to create numerous job opportunities, support investment, and ultimately contribute to a stronger national economy.
The energy minister also shared positive developments regarding Pakistan's power sector.
He said that circular debt has decreased by Rs12 billion, from Rs2,393 billion on June 30, 2024, to Rs2,381 billion by November 2024. The recovery rate for electricity payments has improved significantly, reaching 96% during the same period, compared to 2023, thanks to the government's effective policies.
The minister added that the power division has proposed revised agreements with 18 more Independent Power Producers (IPPs) to optimize the sector’s efficiency.
In line with the government's broader goals to support industrial growth, the cabinet committee on energy approved a proposal to grant industrial estates and special industrial zones a single-point power supply.
These zones will also be empowered to manage connections, billing, and related tasks to address long-standing complaints about the process.
The Power Division will implement this mechanism within the next two to three months.
The recent steps are seen as part of a broader effort to address the challenges of energy consumption while also fostering economic growth and environmental sustainability.
The measures related to electric vehicles and charging infrastructure are expected to have a lasting impact, providing both environmental and financial benefits for Pakistan.