Federal Minister for Energy, Sardar Awais Ahmad Leghari, announced a major reduction in electricity tariffs for electric vehicle (EV) charging stations, cutting the rate by 45%. The new EV charging tariff has been lowered from Rs71 to Rs39.70 per unit, making electric vehicle charging more affordable in Pakistan.
New EV Charging Regulations Implemented
Speaking at a press conference, the energy minister emphasized that this historic 44% tariff cut will promote EV adoption in the country. He also revealed that Pakistan’s first EV charging station and battery replacement regulations have been officially introduced under the National Energy Conservation Authority (NEECA https://www.neeca.gov.pk/), a key institution of the Power Division. A gazette notification has been issued to formalize these regulations.
To streamline business operations, the government has introduced fast-track approvals for EV charging stations. Business owners can now obtain registration and operational approvals within 15 days. The new framework also includes a special concessional electricity rate for EV charging stations.
Circular Debt Reduction & Independent Power Producers (IPPs) Agreements
During his address, Laghari provided updates on the country’s circular debt, which has decreased by Rs12 billion—falling from Rs2,393 billion in June 2024 to Rs2,381 billion by November 2024. The 96% recovery rate during this period reflects the government’s improved energy policies.
Additionally, the Power Division has proposed revised agreements with 18 more Independent Power Producers (IPPs), which have been submitted to the federal cabinet. The Cabinet Committee on Energy (CCOE) has approved a proposal allowing single-point power supply to industrial estates and special economic zones, enabling them to manage power distribution, billing, and collection. The government aims to roll out the new mechanism in two to three months.
EV Conversion to Cut Fuel Costs & Reduce Pollution
Discussing the economic impact of EVs, the minister highlighted that Pakistan has around 10 million motorcycles, with an annual fuel expenditure of $6 billion. Transitioning these motorcycles to electric technology—which costs around Rs50,000 per conversion—could help save billions in foreign exchange. Owners can recover the cost within three to four months through fuel savings.
Moreover, the shift towards electric motorcycles and three-wheelers (rickshaws) will lead to:
✅ Lower travel costs for riders and commuters
✅ Reduced air pollution by cutting harmful emissions
✅ Cheaper goods transportation within cities, lowering consumer prices
Business & Investment Opportunities in EV Charging
The Power Division’s EV initiative aims to create business and investment opportunities by encouraging the setup of charging stations and battery swapping points in neighborhoods across Pakistan.
Key benefits include:
🔹 Concessional electricity rates for EV charging stations
🔹 15-day fast-track approval for setting up charging stations or battery points via NEECA’s one-window online registration
🔹 Nominal registration fee of Rs. 50,000
Pakistan’s EV Roadmap: 30% Electric Vehicles by 2030
The EV charging regulations aim to foster a competitive market, attract foreign direct investment (FDI), and support Pakistan’s goal of 30% EV adoption by 2030. The framework covers five levels of EV charging technology, ensuring global and regional EV manufacturers have equal opportunities in Pakistan’s growing market.
Additionally, the new policy includes provisions for:
🔹 Monitoring and auditing of EV charging stations
🔹 Battery replacement point regulations
🔹 Encouraging private sector investment in EV infrastructure
Conclusion
With this historic electricity tariff cut, streamlined EV charging station approvals, and incentives for electric vehicle adoption, Pakistan is taking significant steps toward a sustainable and energy-efficient future. The new EV-friendly policies will help reduce fuel costs, cut pollution, boost local investment, and strengthen the economy.
