Pakistan seeks Swedish green fund support for electric vehicle initiative

ISLAMABAD: Federal Minister for Power, Awais Ahmed Khan Leghari, has invited the Sweden Green Fund to assist Pakistan in converting small vehicles to electric technology by providing both technical and financial support.

This initiative aims to bolster Pakistan’s recent significant reduction in tariffs for electric vehicle (EV) charging stations. The minister presented this proposal during a meeting with Swedish Ambassador Alexandra Berg Von Linde on Thursday.

Leghari discussed the plan to retro-fit existing fossil fuel vehicles, particularly motorcycles, noting that Pakistan currently had over 30 million motorcycles. He pointed out that individuals within this demographic have a strong record of repaying loans. Consequently, he proposed that the Swedish and EU green funds consider offering interest-free loans through Pakistani banks, which have established a robust loan support system.

Highlighting the current energy landscape and the role of renewable energy, Leghari said last year, 55 percent of Pakistan’s electricity was generated from renewable sources.

“Pakistan is fully committed to advancing renewable energy, and the Power Division is diligently formulating policies to ensure affordable and sustainable electricity for consumers,” he stated.

Also read: Pakistan to unveil policy promoting use of electric vehicles

Additionally, he highlighted Pakistan’s review of the Indicative Generation Capacity Expansion Plan (IGCEP) to facilitate the integration of energy into the national grid cost-effectively, maximizing the economic benefits of the country’s energy resources.

In response, Ambassador Berg Von Linde noted that the previous year marked 75 years of diplomatic relations between Pakistan and Sweden, which reflects the strength of their bilateral ties.

She said the Swedish companies operating in Pakistan were eager to secure a green energy supply, and Sweden is prepared to share its expertise and provide technological support. The ambassador also emphasised the textile sector’s focus in Pakistan on enhancing its global competitiveness through renewable and sustainable energy, underscoring Sweden’s leadership in the renewable energy sector, which generates 70 percent of its energy from renewable resources, demonstrating that economic development and green energy can progress together.