Pakistan’s Electric Vehicle Revolution: 40 New Charging Stations and Incentives for EV Adoption

Islamabad: In a bid to propel Pakistan towards sustainable transportation, the government has greenlit the setup of 40 electric vehicle (EV) charging stations along the country’s motorways. Priced initially at Rs39.75 per unit, this power tariff marks a significant step in the rollout of EV-friendly infrastructure, a key component of the new EV policy. The initiative reflects the country’s commitment to a greener future and offers a glimmer of hope for cleaner and more affordable urban mobility.

Financing for Two- and Three-Wheel EVs to Boost Adoption

Recognizing the potential of electric two- and three-wheelers in reducing pollution and catering to mass urban transportation, the government is also discussing ways to incentivize production. During a recent meeting on EV policy, the Pakistan Banks Association (PBA), represented by Chairman Zafar Masud, put forward a proposal to stimulate demand for these eco-friendly vehicles. By offering a debt-to-equity ratio of 70:30, and financing at KIBOR plus 2.5%, the government aims to make EVs financially accessible to the masses.

Strategic Infrastructure Expansion

As Pakistan embraces EVs, efforts are underway to address infrastructure requirements. Key stakeholders from the communication, power, and petroleum ministries, along with the Federal Board of Revenue and the Central Power Purchasing Agency-Guarantee (CPPA-G), are collaborating to identify 40 charging station locations on the motorways from Peshawar to Karachi. Service stations at intervals of 120 km along the motorways will house these charging facilities, enhancing accessibility for EV users across major routes.

The National Highway Authority (NHA) and oil marketing companies have also expressed interest in hosting these stations at petrol pumps, ensuring that EV charging facilities are widely available. Plans to include solar power options at service areas to further reduce energy costs are also under review.

Developing a Framework for EV Policy

The draft of the EV policy is shaping up with input from various government bodies and experts. A working group, supported by the Revenue Mobilisation, Investment, and Trade (ReMIT) project, is focused on crafting a tax and duty structure that encourages local EV manufacturing and import. Additionally, the Ministry of Climate Change has highlighted the need for charging stations to support multiple types of vehicles through multi-bead connectors, addressing the limited availability of such stations in Pakistan.

Power Tariff and Economic Viability

CPPA-G has proposed a power tariff of approximately Rs40 per kilowatt-hour, aiming to balance profitability for charging station operators with cost savings for consumers. Data from the Energy Centre at Lahore University of Management Sciences (LUMS) suggests that, at this rate, the return on investment for small electric sedans would be achievable within three to four years, making EV ownership financially viable.

Ensuring Seamless EV Experience

In addition to establishing charging stations, the government is exploring advanced features such as emissions tracking, carbon credits, and a centralized EV dashboard. New regulatory measures by the National Energy Efficiency and Conservation Authority (NEECA) aim to simplify investment in charging infrastructure, focusing on one-window operations, standardization, and expedited power connections.

The need for visible signage along highways, booking options for charging slots, and convenient power connections was emphasized to streamline the EV experience. This comprehensive EV policy draft underscores the government’s dedication to an efficient, accessible, and affordable EV transition across Pakistan.

Conclusion

Pakistan’s ambitious steps towards establishing a sustainable EV infrastructure mark a new chapter in its environmental strategy. From financing schemes to robust infrastructure and supportive policies, these efforts are set to pave the way for an EV revolution in Pakistan, making electric mobility accessible, economical, and widely available.