Pakistan to lower charging prices to boost electric vehicle demand

ISLAMABAD: Pakistan is aiming to boost demand for electric vehicles (EVs) by lowering electricity prices at charging stations as part of efforts to reduce carbon emissions in the transport sector, according to Bloomberg.

According to Mettis Global, Power Minister Awais Leghari stated that the government plans to stimulate demand by significantly reducing costs for new industries, including EVs.

He added that a new pricing structure is being discussed, which will benefit charging and battery swapping stations for small cars, two-wheelers, and three-wheelers.

Several auto manufacturers, mostly Chinese, have introduced EV models in Pakistan this year. Recently, BYD’s local partner, Hub, signed an agreement with Pakistan State Oil to develop a national network of EV charging stations.

This comes as Pakistan faces declining electricity demand, coupled with rising prices, forcing the government to seek financial assistance from the International Monetary Fund (IMF).

As part of the conditions for a $7 billion loan, the government is working on energy sector reforms, including renegotiating contracts with local power companies and restructuring debt with Chinese lenders.

Additionally, Prime Minister Shehbaz Sharif’s government is working to move away from the current system where the government is the sole electricity buyer.

An independent market operator system is expected to be in place by March, with broader energy trade expected to expand within a year, according to Leghari.

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