In a bid to strengthen the country’s electric vehicle (EV) infrastructure, the Pakistani government has announced a 45% reduction in the electricity tariff for EV charging stations. This move, unveiled on January 15 by Federal Minister for Energy, Awais Ahmad Leghari, is part of Pakistan’s first-ever electric vehicle charging policy.
The new tariff will reduce the cost from Rs71.10 to Rs39.40 per unit, making it more affordable to operate charging stations. Leghari stated that the government’s goal is to make electric vehicles more accessible by addressing challenges related to electricity costs and a lack of regulatory framework, which have hindered the growth of EV charging stations across the country.
Pakistan’s current EV charging network is underdeveloped, with major cities like Karachi and Lahore hosting only a few stations. The tariff cut is expected to encourage the establishment of more charging stations, including in local shops, thereby expanding the charging network nationwide.
In addition to the reduced tariff, Leghari highlighted a new online portal that will expedite the approval process for setting up charging stations, promising a 15-day turnaround time. This will streamline the process for businesses and entrepreneurs interested in entering the EV sector.
The minister also appealed to international financial institutions to support Pakistan through green financing, which would help maintain some of the lowest electricity rates in the region, benefiting both consumers and industries. Prime Minister Shehbaz Sharif praised the decision, noting that it would boost investment in the EV sector and help conserve foreign exchange by reducing reliance on imported fuels.
In a related development, the government recently approved revised agreements with 14 Independent Power Producers (IPPs), which could lower electricity prices by Rs10 to Rs11 per unit. This move is expected to result in significant savings, estimated at Rs802 billion.
Overall, this policy is a major step toward encouraging the use of electric vehicles in Pakistan, aligning with the country’s broader goals for sustainable development and energy conservation.
