The federal government has announced a 45% reduction in electricity tariffs for EV charging stations, slashing the rate from Rs71 to Rs39.70 per unit, in a significant move to promote electric vehicles (EVs) across Pakistan.

The announcement was made by Federal Minister for Energy Awais Leghari during a press conference in Islamabad on Wednesday.

The initiative is part of the government’s broader strategy to encourage the adoption of EVs and reduce reliance on petroleum products. Minister Leghari highlighted that new rules and regulations have been introduced to expedite the establishment of charging stations, with licenses now being issued within 15 days.

“Charging stations will soon be available in every street and neighbourhood,” said Awais Leghari, emphasizing the government’s commitment to creating a robust infrastructure for EVs.

The minister urged citizens to switch from petrol to electric vehicles, stating that e-motorcycles are three times cheaper to operate than their petrol counterparts. He added that these efforts align with Pakistan's goal to introduce environmentally friendly and cost-effective transportation solutions.

"We consider this an important achievement at the international level. This will be an important step towards the replacement of petrol-based motorcycles and cars," Leghari remarked, adding that the SIFC had played a very important role in this regard.

Additionally, he noted that the government plans to finance the conversion of petrol-based motorcycles and rickshaws to electric power, making the shift more accessible for the public.

Minister Leghari also addressed ongoing energy sector reforms, reporting a reduction in circular debt by Rs12 billion between July and November. He highlighted improvements in the performance of distribution companies (Discos), stating that losses have been capped at Rs170 billion over the past five months, compared to Rs223 billion last year. "All industrial estates will get electricity at one place," the minister stated.

Leghari expressed optimism about Pakistan’s energy future, stating, “In a few months, we will provide the cheapest electricity in the region.”

He refuted claims of 10-12-hour loadshedding, stressing that outages will continue where there are losses. "Hopefully, Pakistan will overcome the surplus policy in the future. We don't want any negative impact on the industry," he stated, adding that there was an oversupply of gas, adding that the government would provide affordable electricity to industry and consumers.

"So far, agreements with three IPP groups have been reviewed through which we can save Rs137 billion annually. We have removed a total burden of Rs1,457 billion. We need to improve good governance to cleanse the Discos from political interference," he added.

Economic and environmental impact

Currently, Pakistan spends $6 billion annually on fuel imports for motorcycles and three-wheelers. The shift to EVs, coupled with reduced electricity tariffs for charging stations, is expected to significantly cut these costs while reducing the environmental impact.

The minister said the meeting chaired by the prime minister reviewed the damage caused by the use of petrol and diesel, adding that he hoped the world will fulfil the promise of Green Climate Finance. "E-bikes should be financed so that environmentally friendly vehicles can run. The whole world should contribute to green financing," he stated.

PM hails new e-vehicle policy

Prime Minister Shehbaz Sharif chaired a high-level meeting to review the promotion of electric vehicles (EVs) in Pakistan, where he welcomed the preparation of the Electric Vehicles Policy by the Power Division.

He also described the recently announced 44% concessional electricity tariff for EV charging stations as a "historic package" aimed at revolutionizing transportation and reducing dependence on imported fuels.

In the meeting, a detailed briefing was provided on the EV policy, which includes reducing the electricity tariff for charging stations from Rs71 to Rs39.70 per unit, making EV charging significantly more affordable.

The briefing highlighted the environmental benefits of EVs, including a significant reduction in harmful emissions and air pollution. PM Sharif emphasized that the policy will not only create new business opportunities but also contribute to achieving Pakistan’s sustainability goals.

Shehbaz instructed relevant authorities to extensively publicize the new EV policy, ensuring widespread awareness among citizens. He lauded the Power Division’s efforts in formulating the policy and emphasized the need to promote the economic and environmental advantages of EV adoption.