In a major step to improve electric vehicle (EV) charging infrastructure in Pakistan, the government has announced a 45% reduction in the electricity tariff for EV charging stations. Federal Minister for Energy Awais Ahmad Leghari made the announcement on Wednesday, stating that the tariff has been lowered from Rs71.10 to Rs39.40 per unit.
Addressing a press conference, Leghari emphasized the government’s commitment to making EVs more accessible to the public. He acknowledged that high electricity rates and a lack of legislation have hindered the growth of EV charging stations in the country. “This decision will pave the way for the expansion of charging stations and increase EV adoption in Pakistan,” he said.
The minister also highlighted the ease of setting up charging stations under the new policy. “Individuals can now start a battery charging business even in small shops within their neighborhoods. Approvals [No Objection Certificates] for setting up charging stations will be issued within 15 days through an e-portal,” he added.
Leghari urged international financial institutions to support Pakistan’s green initiatives through green financing. He also expressed optimism about the country’s energy future, stating, “In the coming months, Pakistan will be in a position to provide the cheapest electricity to its industry and consumers in the region.”
Sharing updates on the energy sector’s performance during the first five months of FY25, the minister revealed that the circular debt has been reduced by Rs12 billion, bringing it down to Rs368 billion. Losses incurred by distribution companies (DISCOs) also dropped to Rs170 billion in 5MFY25, compared to Rs223 billion in the same period last year. However, he admitted that losses could have been further reduced to Rs140 billion if the boards of Sukkur and Hyderabad DISCOs had been replaced.
Leghari reiterated that the reform process in the energy sector is ongoing, with efforts focused on improving efficiency and reducing costs.
Prime Minister Shehbaz Sharif welcomed the decision to cut EV charging tariffs, calling it a move that would boost investor confidence. “This will encourage investors to explore opportunities in the EV sector,” he said. The prime minister also noted that increased EV adoption would help Pakistan save valuable foreign exchange by reducing fuel imports.
In a related development, the federal cabinet on Tuesday approved revised agreements with 14 Independent Power Producers (IPPs), which are expected to result in a reduction of Rs10-11 per unit in electricity prices. The revised agreements include a consensus to cut profits and costs for these IPPs by Rs802 billion, marking a significant step toward reducing energy costs for consumers.
