Govt cuts tariff on charging stations by 45%: Leghari

In a bid to improve electric vehicle (EV) charging infrastructure in Pakistan, the government has decided to cut the tariff for EV charging stations by 45%, announced Federal Minister for Energy Awais Ahmad Leghari on Wednesday.

“We are striving to make EVs accessible to the masses. In this regard, the Power Division has taken a significant step.

“The government has decided to reduce the electricity tariff for charging stations by 45%, lowering it from Rs71.10 to Rs39.40,” said Leghari, while addressing a press conference.

Leghari said that due to high electricity rates and a lack of legislation, there is a severe shortage of charging stations in the country.

He said that the latest decision will pave the way for expansion of charging stations, and increase EV adoption in Pakistan.

“This decision will enable individuals to start a battery charging business even in small shops within their neighbourhoods.

“You will receive an approval [No Objection Certificate] within 15 days for setting up a charging station through an e-portal,” he added.

The energy minister urged international financial institutions to facilitate Pakistan in this regard through green financing.

“In the coming months, Pakistan will be in a position to provide the cheapest electricity to its industry and consumers in the region,” he said.

Sharing an update on the energy sector’s performance during the first five months of the ongoing fiscal year, the federal minister said that the energy sector’s circular debt has been reduced by Rs12 billion, bringing it down to Rs368 billion.

“Meanwhile, the losses incurred by distribution companies (DISCOs) lowered to Rs170 billion in 5MFY25, as compared to Rs223 billion in 5MFY24,” he said.

The energy minister admitted that the losses could have been lowered to Rs140 billion if the boards of Sukkur and Hyderabad DISCOs had been replaced.

He said that the reform process in the energy sector is ongoing.

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In a separate meeting, PM Shehbaz Sharif praised the development, saying that the decision would boost investor confidence. “They will be encouraged to invest in this field,” he said.

He added that the increase in EV adoption would help save valuable foreign exchange by reducing fuel imports.

The federal cabinet on Tuesday approved revised agreements with 14 Independent Power Producers (IPPs), which may result in Rs10-11 per unit decrease in electricity prices.

As a result of these revised agreements, a consensus was reached to reduce profits and costs for these IPPs by Rs802 billion.