Electricity Tariff Cut for EVs to Encourage Investors: PM Shehbaz

Electricity Tariff Cut for EVs to Encourage Investors: PM Shehbaz

Islamabad, January 15, 2025 – Prime Minister Muhammad Shehbaz Sharif on Wednesday hailed the significant reduction of Rs30 per unit in electricity tariffs for electric vehicles (EVs) as a transformative step to boost the adoption of emission-free, eco-friendly vehicles in Pakistan.

Chairing a high-level meeting on the promotion of the Electric Vehicle Policy, Shehbaz lauded Power Minister Awais Ahmed Leghari and his team for devising a robust proposal to support EV manufacturers in rolling out affordable, charge-based automobiles. “The power minister and his team have successfully reduced the electricity tariff in this sector from Rs70 to Rs40 per unit. This will undoubtedly encourage investors and industry stakeholders to inject more capital into the EV sector,” Shehbaz remarked.

Shehbaz emphasized that Pakistan is grappling with severe air pollution and the broader implications of climate change. He reiterated the country’s proactive role in global climate forums like COP-27 and COP-29, where Pakistan’s stance on climate-induced disasters was well-articulated. “Electric vehicles are a vital solution to combat air pollution. Scaling up their adoption will help mitigate climate change, slash our fuel import bill, and preserve our environment,” Shehbaz stated.

Highlighting the commercial viability of EVs, Shehbaz underlined the importance of subsidizing electricity tariffs for this industry. “The previous tariff of Rs70 per unit was unsustainable for manufacturers. This reduction to Rs40 per unit is a strategic move that aligns with global practices where industries and consumers in this sector are given substantial incentives,” he added.

During the meeting, officials from the Power Division presented the details of the new policy. They announced that EV charging stations would now be charged at a reduced tariff of PKR 39.70 per unit, a substantial decrease from the previous PKR 71 per unit. This change is expected to lower travel costs by up to three times compared to conventional fuel-powered vehicles.

The policy aims to reduce Pakistan’s dependency on fossil fuels, conserve foreign exchange, and cut harmful emissions. It also opens new avenues for business, attracts local and foreign investments, and creates numerous employment opportunities, driving economic growth.

The meeting further highlighted that regulations for establishing EV charging stations and battery replacement points have been simplified. Under the new rules, registration and business licenses for charging stations will be issued within 15 days. NEPRA will ensure safety measures and conduct annual inspections, fostering a competitive market to attract direct investments.

The meeting was attended by Federal Minister for Economic Affairs Ahad Cheema, Federal Minister for Industries and Production Rana Tanveer Hussain, Federal Minister for Information and Broadcasting Attaullah Tarar, Federal Minister for Power Sardar Owais Ahmad Leghari, and other senior officials.