ISLAMABAD: Pakistan plans to significantly lower electricity tariffs for electric vehicle (EV) charging stations as part of its strategy to decarbonize the transport sector and stimulate EV demand, according to Power Minister Awais Leghari.
The government is formulating a pricing structure to make EV charging more affordable for small cars, two-wheelers, and three-wheelers. This initiative aligns with the broader goal of reducing emissions and promoting sustainable transportation.
Over six auto manufacturers, predominantly Chinese brands, have introduced EV models in Pakistan this year. Notably, Chinese EV giant BYD, through its local partner Hub, has collaborated with Pakistan State Oil (PSO) to establish a nationwide EV charging network.
Despite these developments, Pakistan faces challenges in its energy sector. Electricity demand has dropped amid soaring tariffs, and the government has been compelled to secure a $7 billion loan from the International Monetary Fund (IMF). As part of the loan conditions, reforms are underway to revitalize the energy sector, including renegotiating contracts with local power companies and restructuring debt with Chinese lenders.
The government is also transitioning from being the sole electricity buyer to fostering a competitive energy market. Leghari revealed that an independent market operator system would become operational by March, paving the way for broader electricity trade within a year.
