The Pakistani government is working on a major plan to lower the cost of charging electric vehicles (EVs). They have requested the National Electric Power Regulatory Authority (NEPRA) to revise electricity rates for EV charging stations. According to the proposal, the electricity base tariff may be reduced to Rs. 23.57 per unit. However, after adding taxes, the final cost is expected to be Rs. 39 per unit. This would be about 45% lower than the current rates, making EV charging much more affordable.
Currently, EV charging stations pay Rs. 45 per unit, and after taxes, the cost rises to Rs. 71.10 per unit. To manage the price difference, the government has suggested a cross-subsidy mechanism. This means that the lower rates will be covered by shifting some costs to other sectors. The goal is to increase EV adoption in Pakistan, with a target of having 30% of all vehicles electric by 2030.
A recent hearing was conducted under NEPRA’s chairman to discuss this proposal. Officials revealed that the government wants to lower the base tariff from Rs. 45.54 per unit to Rs. 23.57 per unit. At present, EV users are paying up to Rs. 70 per unit for charging. This high cost has been a major hurdle in making EVs popular among the people.
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One of the key concerns is that Pakistan’s EV infrastructure is still in its early stages. At present, there are only eight EV charging stations across the country. The Power Division has stated that this needs to change in order to fight climate change and modernize transportation. The government wants to attract more investment in the EV sector and make charging stations more widely available.
To support this effort, the authorities have revised the regulatory framework after consulting key stakeholders. The Cabinet has approved the reduction in base tariffs for EV charging stations. This move is expected to make electric vehicles much more affordable by cutting down charging costs. If EV owners find it cheaper to charge their cars, more people will be encouraged to switch to electric vehicles.
Currently, Pakistan’s commercial electricity tariff is nearly Rs. 94 per unit, but it is not fully applied to consumers. Most people end up paying around Rs. 70 per unit. Over the past year, EV charging stations in Pakistan used only 94,000 units of electricity. There are only about 7,000 to 8,000 EV users in the country. These numbers show that Pakistan has a long way to go in terms of EV adoption.
The government is determined to make electric vehicles a practical option for more people. By lowering charging costs, they aim to encourage car buyers to consider EVs as a cost-effective alternative to traditional fuel-powered cars. If this new pricing plan is implemented, it could lead to rapid growth in the number of EVs on Pakistan’s roads, contributing to a cleaner and more sustainable future.
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