To help Pakistan revamp its energy sector and encourage the advent of electric vehicles, the country’s government has announced cuts of 45 percent on electricity tariffs for EV charging stations, announced the government, Under the new rate, fixed at 39.70 rupees (14 cents) per unit, the tariff is now 71.10 rupees (25 cents) per unit, Energy Minister Awais Leghari announced at a press conference in Islamabad Wednesday.  

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The dual benefits of the initiative, according to Leghari, were for both investors and consumers. He noted that this policy will make EV charging stations less expensive, attracting not only two-wheeler and three-wheeler owners to shift away from petrol vehicles to electric ones. Yet, the exact date of rollout of revised tariff regime has not been announced.  

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Additionally, the government hopes to encourage shift to sustainable transportation by slashing tariffs and providing green energy loans to purchase EV batteries for two wheeler and three wheeler owner, both of whom will be potential customers.  

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'Strategically, this is important for Pakistan, where energy imports account for a significant proportion of external payments,' said Ahmed Majid, a resident scholar at Pakistan Foreign Policy Council. Government is targeting to curb its use of fossil fuels, keep foreign currency out flows at bay, and contribute to long term energy sustainability by supporting EV adoption.  

The tariff cut is the latest step in a process aimed at transforming Pakistan's energy sector under the terms of an International Monetary Fund (IMF) USD 7 billion economic bailout package, which the country's finance minister has said it needs to avert a debilitating default. Modernising energy sector and promoting green programmes are imperative steps towards addressing both economic and environmental problems of Pakistan.  

The initiative also mirrors trends around the world, with many countries embracing similar plans to speed up the transition to EVs. The change the government is envisioning in consumer habits and energy consumption will mainly occur by targeting two wheelers and three wheelers, which are commonly and widely used in Pakistan for personal and commercial purposes.  

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Industry observers view the announcement as a promising development in Pakistan's energy policy, with the potential to make EVs a more viable and attractive option for the country's population. As the nation grapples with economic and environmental challenges, this policy could mark a turning point toward a greener and more energy-efficient future.