EV power tariff cut to Rs30 per unit to foster eco-friendly transport

January 16, 2025 (MLN): To boost emission-less and eco-friendly vehicles in Pakistan, the power tariff for electric vehicles (EVs) has been reduced to Rs30 per unit.

This statement was made by Prime Minister Muhammad Shehbaz Sharif while chairing a meeting to discuss the promotion of the Electric Vehicle Policy, as per the press release issued.

"EVs are the right step to address air pollution that needs to be scaled up to contain climate change," Shehbaz Sharif said.

"It will help reduce air pollution, the massive import bill of fuels, and preserve the pristine environment", he added.

Commenting on the commercial aspect of the EVs, he emphasized the importance of looking into the electricity tariff offered to these industries.

He stated that the current Rs70 tariff was not viable for them to operate and continue their production, and it needed to be subsidized.

Globally, he said these sectors were given special incentives focusing on the industry and the consumers at all tiers.

The Prime Minister appreciated the Power Minister, Awais Ahmed Leghari, and his team for their efforts.

They worked out a convincing proposal aimed at facilitating EV manufacturers in rolling out subsidized charge-based automobiles in the country, the Prime Minister said.

“They have drastically reduced the tariff in this sector from Rs70 to Rs40 per unit”, he said.

“It will encourage the investors and industry partners to tap more investments into the EVs sector,” he added.

He pointed out that the country was facing air pollution and climate change which was also a serious concern for the world.

"However, the country had actively participated in the global climate forums of COP-27 and COP-29", the prime minister noted.

"These forums allowed the country to present its stance in state-level negotiations on addressing climate-induced disasters and catastrophes like air pollution", he further noted.

“Additionally, it discussed solutions to resolve the risks associated with such issues, he added.

During the meeting, officials from the Power Division briefed the forum on the new policy.

They said that EV charging stations would now be charged at a reduced tariff of Rs39.70 per unit instead of the existing Rs71 per unit.

This reduction is expected to lower travel costs by up to three times compared to petrol and diesel-powered vehicles.

The policy aims to decrease the country’s dependence on fossil fuels, save substantial foreign exchange, and reduce harmful emissions, thereby mitigating air pollution.

It also seeks to open new avenues for profitable businesses, attract local and foreign investments, and create numerous employment opportunities, boosting the national economy.

The meeting highlighted that regulations for setting up EV charging stations and battery replacement points have been simplified to encourage investment.

Under the new rules, charging station registration and business licenses would be issued within 15 days.

Safety measures and annual inspections for charging stations would be ensured by the National Electric Power Regulatory Authority (NEPRA).

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