ISLAMABAD Pakistan on Thursday requested France’s assistance in granting access to its Green Fund to facilitate the conversion of traditional small vehicles to electric technology, ensuring a cleaner environment and reducing oil imports. This came a day after the country announced a reduction in power rates for electric vehicle charging stations (EVCS).
The idea to assist Pakistan’s transition to electric compact vehicles was formally discussed by French Ambassador Nicolas Galey and Power Minister Awais Ahmad Khan Leghari.
According to government estimates, an expenditure of roughly Rs50,000–150,000 might make it possible to switch from fossil fuels to electric motors for bikes, three-wheelers, and compact cars up to 800cc. According to reports, almost 10 million motorcycles alone require about $6 billion worth of gasoline imports each year.
The minister said a day earlier that EVCS power rates would be reduced by 44 percent to Rs39.70 per unit from Rs71.10, including taxes that need to be implemented through the official regulatory process.
To aid with the transition, the government wants to use the French Green Fund.
Mr. Leghari gave the ambassador an update on the new Electric Vehicle Policy, which aims to safeguard the environment and save billions of dollars in gasoline annually. It will also reduce transportation expenses, which will lessen the public’s financial burden.
The French ambassador praised Pakistan’s successful negotiations and the cordial assessment of agreements with Independent Power Producers (IPPs), according to an official statement. Negotiations with 28 IPPs will save the country a total of Rs1.4 trillion, Mr. Leghari informed the ambassador.
In order to ensure effective distribution of excess power, the minister informed the ambassador that the government will shortly implement a Wheeling Policy for electricity transmission and distribution. In addition, preparations are underway to auction off extra electricity. “These measures will enable the government to withdraw from Pakistan’s power industry, fostering a competitive atmosphere,” he stated.
Additionally, Mr. Galey was told that Pakistan has reduced line losses and improved recovery rates by appointing independent boards for the majority of the distribution businesses. The government is also giving priority to promoting solar energy, the minister continued.
According to the minister, all reforms were carried out in the most transparent manner possible, opening up significant investment potential in the power industry.
The minister was informed by the French ambassador that Pakistan’s EV projects and other energy reforms would likely produce in positive outcomes, and that France would look into offering all the technical and financial support available.
Reduced expenses for transportation
As to the Power Division, there are presently 10 million bikes in the nation, and their fuel consumption amounts to $6 billion every year. In addition to saving foreign cash, converting these motorcycles to electric technology, which typically costs Rs50,000, could guarantee a return on investment in three to four months.
Similar to this, it is anticipated that the use of electric technology in three-wheelers, or rickshaws, will drastically cut the cost of urban transportation, resulting in cheaper fares and assisting in the reduction of hazardous emissions, thus tackling air pollution. Lowering travel expenses will also benefit urban goods transportation, which could result in lower prices for necessities. The conversion cost is approximately Rs100,000 per unit.
In the meantime, the government has begun developing the New Energy Vehicle (NEV) Policy 2025 to address major obstacles to the production and use of EVs that impede the transportation sector’s shift to clean energy.
The NEV policy
The NEV Policy 2025 was updated during a stakeholder conference chaired by Finance Minister Muhammad Aurangzeb. The Governor State Bank of Pakistan, the Finance, Commerce, and Climate Change secretaries, FBR’s Member Customs Policy, and Minister for Industries and Production Rana Tanveer Hussain were present.
In addition to discussing how to improve manufacturing processes, solve infrastructure needs, simplify EV production through essential legislative revisions, manage supply chain concerns, and promote private sector investment, the meeting also covered strategies to overcome obstacles to EV production and acceptance. The NEV Policy 2025-30 must be developed and implemented promptly, according to the finance minister, in order to meet policy goals and match them with Pakistan’s economic and environmental concerns.
