The sharp drop of Rs 30 per unit in the electric vehicle (EV) power tariff on Wednesday was praised by Prime Minister Muhammad Shehbaz Sharif as a positive move for the industry to increase the number of emission-free and environmentally friendly automobiles in the nation.
The Prime Minister, who was presiding over a meeting to discuss the promotion of the Electric Vehicle Policy, praised Power Minister Awais Ahmed Leghari and his group for developing a compelling plan to help EV manufacturers introduce subsidized charge-based cars to the nation.
The rate in this sector was slashed from Rs 70 to Rs 40 per unit by the power minister and his team. He stated that it will incentivize investors and industry partners to increase their investments in the electric vehicle (EV) sector.
He emphasized that air pollution and climate change were major issues for the nation and the entire planet. The nation has, however, actively participated in the international climate forums of COP-27 and COP-29 to express its position in state-level negotiations on addressing climate-induced disasters and catastrophes, such as air pollution, and measures to mitigate the risks associated with them, he continued.
“EVs are the right step to address air pollution that needs to be scaled up to contain climate change because they will help reduce air pollution, the massive bill of fuel imports, and preserve the pristine environment,” claimed Prime Minister Shehbaz.
Speaking about the business side of EVs, he stated that it was critical to investigate the electricity rates provided to these industries that required subsidies because the current Rs 70 rate was insufficient for them to function and carry on with their output.
According to him, these industries received specific incentives on a global scale that prioritized the industry and all levels of consumers.
Members of the Power Division briefed the forum on the new policy during the meeting. Instead of the current PKR 71 per unit, they announced that EV charging stations would now be charged at a discounted rate of PKR 39.70 per unit. This cut is anticipated to result in up to three times cheaper travel expenses when compared to cars that run on gasoline and diesel.
In addition to saving a significant amount of foreign exchange, the policy seeks to lessen the nation’s reliance on fossil fuels, reduce harmful emissions that contribute to air pollution, open up new business opportunities, draw in both domestic and foreign investment, and generate a large number of job opportunities, all of which will strengthen the country’s economy.
In an effort to attract investment, the meeting emphasized the simplification of rules pertaining to the installation of EV charging stations and battery replacement locations. Under the new regulations, NEPRA would guarantee safety precautions and yearly inspections for charging stations, register charging stations and grant business licenses within 15 days, and promote a competitive market environment to draw in direct investments.
Along with senior government officials, Federal Ministers for Economic Affairs Ahad Cheema, Industries and Production Rana Tanveer Hussain, Information and Broadcasting Attaullah Tarar, and Power Sardar Owais Ahmad Leghari attended the meeting.