Rs.30 Per Unit Power Tariff Slash for EV Sector Announced by PM to Encourage Investment

Under the new rules, particularly charging station registration and business licenses would be issued within 15 days.

The meeting highlighted that regulations for setting up EV charging stations and battery replacement points have been simplified to encourage investment.

Prime Minister Muhammad Shehbaz Sharif hailed the drastic reduction of Rs30 per unit in power tariff for electric vehicles (EVs) as a propitious step for the sector to boost the emission-less and eco-friendly vehicles in the country.

During a meeting focused on promoting the Electric Vehicle Policy, the Prime Minister praised Power Minister Awais Ahmed Leghari and his team for developing a compelling proposal. This initiative aims to support EV manufacturers in launching subsidized charge-based vehicles in the country.

“They (power minister and his team) have drastically reduced the tariff in this sector from Rs70 to Rs40 per unit. It will encourage the investors and industry partners to tap more investments into the EVs sector,” he said.

He pointed out that the country was facing air pollution and climate change which was also a serious concern for the world. However, the country had actively participated in the global climate forums of COP-27 and COP-29 to present its stance in state-level negotiations on addressing climate-induced disasters and catastrophes like air pollution and solutions to resolve the risks due to it, he added.

“EVs are the right step to address air pollution that needs to be scaled up to contain climate change as it will help reduce air pollution, the massive import bill of fuels and preserve the pristine environment,” PM Shehbaz said.

Commenting on the commercial aspect of the EVs, he said it was important to look into the electricity tariff offered to these industries that needed to be subsidized as the present Rs.70 tariff was not viable for them to operate and continue their production.

During the meeting, officials from the Power Division briefed the forum on the new policy. They told that EV charging stations would now be charged at a reduced tariff of PKR.39.70 per unit instead of the existing PKR.71 per unit. This reduction is expected to lower travel costs by up to three times compared to petrol and diesel-powered vehicles.

The policy aims to decrease the country’s dependence on fossil fuels, saving substantial foreign exchange, reduce harmful emissions, thereby mitigating air pollution, open new avenues for profitable businesses and attract local and foreign investments and create numerous employment opportunities, boosting the national economy.