Pakistan has requested France’s support for accessing its Green Fund to aid the conversion of small vehicles to electric technology, aligning with efforts to cut oil imports and ensure a cleaner environment.
Power Minister Awais Ahmad Khan Leghari discussed the initiative on January 16 with French Ambassador Nicolas Galey, emphasizing the need for sustainable transportation solutions.
The government estimates that transitioning motorcycles, three-wheelers, and small vehicles up to 800cc from fossil fuels to electric engines would require investments of Rs50,000 to Rs150,000 per vehicle. With approximately 10 million motorcycles consuming $6 billion worth of imported petrol annually, the move could significantly reduce costs and environmental impact.
Policy reforms and renewable energy focus
Leghari highlighted the Electric Vehicle (EV) Policy, introduced to promote annual fuel savings and environmental protection. Additionally, he shared updates on government reforms in the power sector, including the negotiation of agreements with Independent Power Producers (IPPs), which are expected to save Rs1.4 trillion nationally.
The minister also announced plans for a Wheeling Policy to enhance electricity transmission and distribution efficiency, alongside auctions for surplus electricity. These steps aim to create a competitive energy market, enabling the government to gradually exit the power business.
France expressed optimism regarding Pakistan’s energy reforms, with Galey pledging to explore technical and financial assistance for EV initiatives.
Tariff reduction for electric vehicle charging stations
On January 15, the government announced a 44% reduction in power tariffs for EV charging stations (EVCS), cutting rates from Rs71.10 to Rs39.70 per unit. The revised tariff, which must receive regulatory approval, is expected to reduce transportation costs and support EV adoption.
Cheaper transportation costs
Converting motorcycles and three-wheelers to electric technology promises substantial savings. A typical motorcycle conversion costs Rs50,000, ensuring a return on investment within three to four months, while reducing fuel consumption and emissions. For three-wheelers, the estimated conversion cost is Rs100,000, potentially lowering urban travel expenses and reducing essential commodity prices by cutting goods transportation costs.
The government is also prioritizing renewable energy, including solar power projects, to drive investment and enhance energy security. Leghari emphasized that reforms are being implemented transparently, creating lucrative opportunities in Pakistan’s power sector.