Power Minister Awais Leghari on Wednesday announced the government is reducing the tariff for charging stations of electric vehicles (EV) from Rs. 71/unit to Rs. 39.70/unit.
The 44% reduction in the tariff coincides with the implementation of regulations for establishing EV charging stations and battery-swapping points. The regulations, introduced under the Power Division’s National Energy Conservation Authority (NEECA), have been notified.
According to Leghari, the reduction in tariff would allow up to threefold savings in travel costs compared to petrol and other fuels. This, he said, could lead to significant reduction in fares for EV. He said the reduced reliance on petrol and other fuels would also help save foreign exchange.
Government data estimates there are currently 10 million motorcycles across Pakistan, consuming fuel worth $6 billion annually. Converting these motorcycles to electric technology, an average cost of Rs. 50,000, would enable a return on investment within three to four months.
Similarly, the use of electric technology in three-wheeled vehicles (rickshaws) is expected to significantly reduce urban travel costs, leading to lower fares, and potentially even lower prices of essential commodities. Additionally, a shift to electric would help curb harmful emissions, thereby addressing air pollution.
Business opportunities
The initiative, which Leghari said was launched after discussions with all relevant stakeholders, would also enable new business opportunities in setting up charging stations and battery swapping points. The government has reduced to 15 days the time required for permits to set up charging stations or battery swapping points. To achieve this, NEECA has established a one-window system, and registration can now be completed online via their website.
To ensure a competitive market and facilitate both local and foreign direct investment, regulations for establishing charging stations have been simplified, with the registration fee fixed at Rs. 50,000. The ease of doing business is estimated to help achieve a target of 30% EV adoption by 2030.
The new regulations support five levels of charging technology, providing equal opportunities for global and regional EV manufacturers. Special attention has been given to the safety and maintenance of charging stations and battery swapping points, with regular monitoring and audits planned.
The government hopes the introduction of discounted electricity tariffs and EV charging station regulations will create new profitable business and investment opportunities, generate employment, and strengthen the country’s economy.