Pakistan to unveil policy promoting use of electric vehicles

ISLAMABAD: Pakistan is gearing up to introduce a new policy aimed at promoting the use of electric vehicles (EVs), with a particular focus on two-wheelers and three-wheelers, Federal Minister of Power, Sardar Awais Ahmed Khan Leghari, announced during an event.

This initiative is expected to drive the country’s transition towards clean energy, increase demand for electricity, and reduce transportation costs for households. Additionally, the policy will help lower the country’s fuel import bill.

The event, which marked the launch of the Pakistan Power Reforms Project, was co-organised by the Institute of Business Administration (IBA) School of Business Studies and the Ministry of Energy’s Power Division.

In his keynote speech, Minister Leghari outlined key challenges in the power sector and laid out a clear plan for reforms aimed at boosting its efficiency. He emphasised that these reforms would have a direct impact on industrial and economic growth.

The Minister highlighted that the structural reforms being undertaken are multifaceted and their benefits will become visible within a few months. The Power Division is also working to improve the governance of power distribution companies, while overhauling the transmission infrastructure to minimise losses and enhance efficiency.

Addressing concerns over the country’s surplus generation capacity, Leghari revealed that the government is implementing measures to stimulate industrial demand, which will, in turn, fuel economic growth.

According to Mettis Global, he further explained that high tariffs are primarily due to front-loaded debt repayments linked to capacity charges, and the government is exploring policy options to bring prices down across the board.

Leghari stressed the importance of shifting towards a competitive electricity market, where electricity (referred to as ‘electrons’) can be traded freely between buyers and sellers, rewarding efficiency and moving away from the existing cost-plus, single-buyer model.

Read next: Govt is not planning new taxes or mini-budget for FY 2024-25: FBR