Cut in power tariff to encourage investors

Saqib Mushtaq

ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif on Wednesday hailed the drastic reduction of Rs30 per unit in power tariff for electric vehicles (EVs) as a propitious step for the sector to boost the emission-less and eco-friendly vehicles in the country.

The prime minister, chairing a meeting to discuss the promotion of Electric Vehicle Policy, appreciated the Power Minister Awais Ahmed Leghari and his team for working out a convincing proposal aimed at facilitating the EV manufacturers in rolling out subsidized charge-based automobiles in the country.

“They (power minister and his team) have drastically reduced the tariff in this sector from Rs70 to Rs40 per unit. It will encourage the investors and industry partners to tap more investments into the EVs sector,” he said.

He pointed out that the country was facing air pollution and climate change which was also a serious concern for the world. However, the country had actively participated in the global climate forums of COP-27 and COP-29 to present its stance in state-level negotiations on addressing climate-induced disasters and catastrophes like air pollution and solutions to resolve the risks due to it, he added.

“EVs are the right step to address air pollution that needs to be scaled up to contain climate change as it will help reduce air pollution, the massive import bill of fuels and preserve the pristine environment,” PM Shehbaz said. Commenting on the commercial aspect of the EVs, he said it was important to look into the electricity tariff offered to these industries that needed to be subsidized as the present Rs70 tariff was not viable for them to operate and continue their production.

Globally, he said these sectors were given special incentives focusing on the industry and the consumers at all tiers. During the meeting, officials from the Power Division briefed the forum on the new policy. They told that EV charging stations would now be charged at a reduced tariff of PKR 39.70 per unit instead of the existing PKR 71 per unit. This reduction is expected to lower travel costs by up to three times compared to petrol and diesel-powered vehicles.

The meeting highlighted that regulations for setting up EV charging stations and battery replacement points have been simplified to encourage investment. Under the new rules, particularly charging station registration and business licenses would be issued within 15 days, safety measures and annual inspections for charging stations would be ensured by NEPRA and a competitive market environment would be fostered to attract direct investments.

Meanwhile, the Prime Minister Shehbaz Sharif directed all the relevant institutions to play an active role in curbing human smuggling and take strict legal action against the perpetrators defaming the country through their heinous business.

The prime minister, chairing a meeting to review the measures against human smuggling, instructed to address the shortage of manpower in the Federal Investigation Agency (FIA) and ensure effective screening of those traveling abroad at the airports.

The prime minister directed the Ministry of Information and Broadcasting to run an awareness campaign on illegal foreign travel and human smuggling. He also called for seeking Interpol’s support for the extradition of most wanted criminals involved in human smuggling.

During the briefing, the prime minister was told that several human smugglers had been arrested from June 2023 to December 2024. Many government officials have been dismissed for facilitating the crime while several others face disciplinary proceedings.

The prime minister was apprised of the punitive measures being taken against the government officials involved in human smuggling. Besides the assets of human smugglers worth Rs500 million had been confiscated and a process was underway for more such confiscations.