EV makers hold back as Pakistan struggles to finalise charging regulations

LAHORE: The government has yet to finalise a policy on electric vehicle (EV) charging infrastructure regulations, which has been a significant setback for EV manufacturers considering entering the local market. The delay is attributed to a lack of proper coordination among relevant authorities.

The limited number of charging stations across the country has led to frustration among current EV owners, who complain about the insufficient charging network.

Despite paying a premium for their vehicles and earlier assurances from the government about supporting the transition to EVs, many owners are hesitant to rely solely on electric vehicles due to the sparse infrastructure.

Several prominent voices on social media and in the media have highlighted the challenges faced by EV owners. Complaints include charging stations being out of service, technical issues with chargers, and stations being located so far apart that travelling to them can drain a significant portion of the battery, defeating the purpose of the trip.

Moreover, some in Pakistan view EVs as unreliable and not cost-effective. The high upfront cost of EVs, coupled with rising electricity prices, makes charging these vehicles increasingly expensive. These factors have led many to question the practicality of owning an EV in the current environment.

According to Business Recorder, BYD, a leading Chinese automaker, recently unveiled plans to manufacture EV variants in Pakistan. However, the company has expressed uncertainty about when a comprehensive EV charging infrastructure will be available nationwide.

Last year, the National Electric Power Regulatory Authority (NEPRA) drafted regulations for EV charging infrastructure, but disagreements among stakeholders have delayed their finalisation. According to these draft regulations, EV charging stations can be public or private, with varying levels of access depending on ownership and location.

The 12th meeting of the National Energy Efficiency and Conservation Authority (NEECA) Board was held on 16th August 2024, chaired by Federal Minister for Power Sardar Awais Ahmad Khan Leghari.

During the meeting, the Minister directed Board Members to submit their feedback on the draft regulations promptly, so that the policy could be finalised.

Currently, the base tariff for EV charging stations is set at Rs45.54 per kWh, with the aim of encouraging the establishment of charging stations by exempting them from fixed charges and the Fuel Cost Adjustment (FCA).

However, the lack of a finalised policy continues to hinder the development of the necessary infrastructure.

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