Islamabad, January 15, 2025 – In a landmark decision, Pakistan has reduced the electricity tariff for electric vehicle (EV) charging stations by 44%, slashing the rate from PKR 71 per unit to PKR 39.70 per unit. This initiative, a first in the country’s history, is expected to drive significant growth in EV adoption while cutting travel costs and reducing reliance on imported fuels.
The Power Division, through the National Energy Conservation Authority (NEECA), has also introduced comprehensive regulations for establishing EV charging stations and battery swapping points. These regulations, officially notified in the gazette, aim to streamline the transition to electric mobility and promote sustainable transportation solutions.
By reducing electricity rates for EV charging stations, the government anticipates up to threefold savings in travel costs compared to petrol and other fossil fuels. This move is projected to significantly decrease urban transport fares and save billions in foreign exchange currently spent on fuel imports.
Motorcycles, a major mode of transport for millions, account for approximately $6 billion in annual fuel consumption. Converting these motorcycles to electric technology, which costs around PKR 50,000, offers a return on investment within three to four months while saving on fuel expenses. Similarly, introducing electric technology in rickshaws and urban goods transport is expected to cut costs, reduce fares, and mitigate harmful emissions, addressing severe air pollution challenges in urban areas.
The new electricity tariff policy is accompanied by the development of EV infrastructure, with charging stations and battery swapping points to be established nationwide. To encourage investment, permits for setting up these facilities can now be obtained within just 15 days through a one-window system managed by NEECA. The registration fee has been set at an affordable PKR 50,000, and applications can be processed online.
The Power Division has simplified regulations to attract both local and foreign direct investment while ensuring safety and maintenance standards for charging facilities. Regular monitoring and audits will further enhance the reliability of EV infrastructure.
With the reduced electricity tariff and supportive regulations, Pakistan aims to achieve 30% EV adoption by 2030. This initiative is expected to create profitable business opportunities, generate employment, and contribute to economic growth, marking a significant step toward a sustainable, electrified future.