Govt plans to cut EV charging rates to boost demand

November 19, 2024 (MLN): Pakistan is looking to stimulate demand for electric vehicles by reducing power prices at charging stations, as the country attempts to kickstart the decarbonization of its transport sector, Bloomberg reported.

The South Asian nation will create demand “by bringing down drastically the prices for new sectors including EVs,” Bloomberg quoted Power Minister Awais Leghari as saying.

The government is discussing a pricing structure and the incentive would apply to all charging and battery swapping stations for small cars, two-wheelers and three-wheelers, he added.

More than half a dozen auto companies, led by Chinese brands, have launched EV models in Pakistan this year.

Chinese EV maker BYD’s local partner Hub signed an agreement with the country’s largest fuel retailer, Pakistan State Oil, this month to jointly establish an EV charging network across the nation.

Meanwhile, the country has seen a drop in electricity demand while prices have soared and the government has had to secure loans from the International Monetary Fund.

As part of the $7 billion loan requirements, the government is working on a flurry of reforms to restore the energy sector’s viability.

The nation is in talks to revise purchase contracts with local power companies and reprofiling debt with Chinese lenders.

Prime Minister Shehbaz Sharif’s administration also wants to move away from the existing model of the government being the sole buyer of electricity, and create a wider market, Leghari said.

The independent market operator system will be functional by March and broader trade is expected to pick up within a year, he said.

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