Islamabad: The federal government has announced a significant policy shift to promote the electric vehicle (EV) sector by setting a reduced base tariff of Rs 39.70 per unit for electricity consumed at EV charging stations. Operators of these stations will now have the liberty to impose additional charges beyond this base rate, with no ceiling, to cover operational expenses.
Dr Sardar Mohazzam, Managing Director of the National Energy Efficiency and Conservation Authority (NEECA), shared these developments during the 5th meeting of the Central Standing Committee of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Energy. Previously, a Rs 70 per unit tariff applied, which included a Rs 22 charge to cover station operational costs. The removal of this ceiling allows operators to adjust charges according to varying regional operational costs.
Dr Mohazzam highlighted that NEECA’s revised policy recognizes the diverse operational costs of charging stations across the country, particularly in areas like inter-city highways and hilly regions. He also outlined a streamlined process for setting up charging stations, requiring only two no-objection certificates (NOCs) from the relevant power distribution company and the area civic or land-owning agency. The process, which costs Rs 50,000, can be completed online in just 15 days.
With the government’s incentives, Dr Mohazzam anticipates a significant increase in the number of charging stations, ensuring an EV charging point is available every 100 kilometers on motorways. Malik Khuda Baksh, Convener of the FPCCI Standing Committee, expressed his committee’s support for government efforts to introduce EVs, urging incentives for businesses willing to invest in EV assembly and charging infrastructure.
SM Tanveer, Patron-in-Chief of the United Business Group, echoed support for expanding Pakistan’s EV market as part of climate-change mitigation efforts. Yasir Bhambani, CEO of ADM Group, detailed plans to establish over 3,000 EV charging stations nationwide, including facilities for electric buses in Karachi and other cities. Bhambani also announced plans to set up an EV assembly plant in Pakistan, aiming for complete technology transfer to produce mini-electric vehicles to replace conventional fuel-powered cars in ride-hailing services.
The government’s move to lift the tariff ceiling is seen as a major step in enhancing the viability and appeal of EVs, aligning with broader goals to reduce carbon emissions and reliance on fossil fuels.