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Govt announces 45 per cent cut in EV charging tariff


electric vehicle charging

ISLAMABAD: The government of Pakistan has announced a major reduction in the electricity tariff for electric vehicle (EV) charging stations, aiming to boost the country’s EV infrastructure.

Federal Minister for Energy, Awais Ahmad Leghari, revealed on Wednesday that the tariff would be cut by 45 per cent, lowering it from Rs71.10 to Rs39.40 per unit.

“We are committed to making EVs more accessible to the public, and this reduction is a big step in that direction,” said Leghari during a press conference. He explained that the high cost of electricity and lack of regulations had contributed to a shortage of charging stations across the country.

The minister said that the new tariff would help expand the availability of charging stations and promote the use of electric vehicles. “This decision will enable people to set up charging stations even in small shops in their local areas,” Leghari added. He also mentioned that setting up a charging station would now be easier, with approvals being granted within 15 days via an online portal.

Leghari called on international financial institutions to support Pakistan through green financing, highlighting that this initiative would position Pakistan to offer some of the lowest electricity rates in the region for both industries and consumers in the coming months.

In addition, he provided updates on the energy sector’s performance. He stated that circular debt had been reduced by Rs12 billion during the first five months of the current fiscal year, bringing it down to Rs368 billion.

Losses incurred by distribution companies (DISCOs) also decreased to Rs170 billion, compared to Rs223 billion in the same period last year. However, Leghari acknowledged that the losses could have been further reduced to Rs140 billion if the management of Sukkur and Hyderabad DISCOs had been changed.

Separately, Prime Minister Shehbaz Sharif commended the decision, noting that it would attract more investors to the EV sector. He also pointed out that the increased use of electric vehicles would help conserve foreign exchange by reducing fuel imports.

Additionally, the federal cabinet recently approved revised agreements with 14 Independent Power Producers (IPPs), which could lead to a decrease in electricity prices by Rs10 to Rs11 per unit. This move is expected to save Rs802 billion through reduced profits and costs for these IPPs.

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