Pakistan to soon launch policy for promoting electric vehicles: Power Minister

September 26, 2024 (MLN): Pakistan will soon launch a policy that encourages the adoption of electric vehicles, particularly two-wheelers and three-wheelers, to accelerate their uptake in the country, Federal Minister of Power, Sardar Awais Ahmed Khan Leghari stated at an event yesterday.

Such an intervention will not just increase demand for electricity, but also reduce household expenditure on transport, as well as significantly reduce import bill associated with fuel imports, he added.

The Pakistan Power Reforms Project was kicked off at the event that was co-hosted by the School of Business Studies, IBA, and the MInistry of Energy (Power Division).

Sardar Awais Ahmed Khan Leghari gave a keynote address, in which he identified fault lines, and a clear roadmap for reforms that can improve efficiency of the power sector, catalyzing industrial, and economic growth in the process.

The Minister clearly stated that structural reforms are multifaceted, and the results of the same would be apparent in a few months.

The Power Division is actively working towards improving governance standards of distribution companies, while pushing for a radical transformation of transmission infrastructure to improve efficiency, and reduce losses in the process.

On the issue of surplus generation capacity, it was mentioned that plans are in place to stimulate industrial demand through various interventions, such that we can accelerate industrial, and economic growth in the process.

On the issue of tariffs, it was made clear that front-loaded debt repayments contributed significantly to capacity charges, and addressing the same through various policy levers can result in rationalized prices across the board.

More importantly, it remains extremely important that we actively move towards a competitive market regime, where electrons can be traded between buyers, and sellers, such that efficiency is rewarded, moving away from a cost-plus regime focused on a single-buyer model.

It was also mentioned that Pakistan has one of the cleaner energy mixes in the world, with more than 55% of electricity being generated from clean sources, such as hydel, nuclear, and renewables.

More importantly, the same would exceed 70% within a few years. Similarly, almost 75% of electricity generated in the country is through indigenous sources, and the same is expected to increase to more than 90 percent over the next few years.

The event ended on a positive note, with a clear focus on a reform agenda that will result in improved governance standards, and better efficiency in generation, transmission, and distribution of electricity –resulting in lower price of electricity, which can trigger industrial, and economic growth in the process.

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