ISLAMABAD:The government announced on Wednesday a 44% reduction in electricity tariffs for electric vehicle (EV) charging stations, lowering the rate from Rs71 per unit to Rs39.70 per unit to ease costs for consumers.
In addition to the tariff reduction, the government has introduced regulations for setting up EV charging stations and battery swapping points, as outlined in an official notification issued by the National Energy Conservation Authority (NECA) under the Power Division.
This significant decrease in electricity rates for EV charging stations is expected to deliver up to threefold savings in travel expenses compared to petrol and other fuels, potentially resulting in reduced fares for consumers.
Lower reliance on petrol and traditional fuels will also help conserve substantial foreign exchange. Currently, around 10 million motorcycles in the country consume $6 billion annually on fuel. Transitioning these motorcycles to electric technology, which requires an average conversion cost of Rs50,000, could provide a return on investment within three to four months while saving billions of dollars in foreign exchange.
Similarly, converting three-wheeler rickshaws to electric technology is anticipated to reduce urban travel costs significantly, leading to lower fares, decreased harmful emissions, and a meaningful reduction in air pollution.
The reduction in travel expenses could also benefit urban goods transportation, potentially lowering the cost of essential commodities.
A Promising Development
Prime Minister Shehbaz Sharif commended the reduction in EV power tariffs, calling it a pivotal step toward promoting eco-friendly and emission-free vehicles in the country. Chairing a meeting on the Electric Vehicle Policy, the prime minister lauded Power Minister Awais Ahmed Leghari and his team for devising a practical proposal to support EV manufacturers in introducing cost-effective, charge-based vehicles.
“The team has successfully reduced tariffs in this sector from Rs70 to Rs40 per unit, encouraging investors and industry stakeholders to explore more opportunities in the EV sector,” said the prime minister.
Highlighting the challenges of air pollution and climate change, Shehbaz Sharif emphasized that EV adoption is a critical measure to address these issues. He added, “Promoting EVs will not only reduce air pollution but also lower the fuel import bill and contribute to environmental preservation.”
During the meeting, Power Division officials presented details of the new policy, which aims to reduce dependence on fossil fuels, conserve foreign exchange, cut harmful emissions, and open avenues for business growth. The policy is expected to attract both local and foreign investments, generate employment opportunities, and strengthen the national economy.
