IT is pleasantly surprising that the authorities are moving with such purpose to potentially revolutionise transportation. Over the past few days, the government has announced a 45pc cut in the tariff for electric charging stations, quicker permissions for businesses looking to set up charging and battery-swapping facilities, and assistance in arranging green energy loans for owners of two- and three-wheelers to purchase batteries. On Thursday, Power Minister Awais Ahmad Khan Leghari also approached French ambassador Nicolas Galey with a proposal seeking support for transitioning small vehicles to electric technology. Previously, under its New Energy Vehicle Policy, unveiled in November, the government had announced it wanted 30pc of all vehicles on the roads to be electric by 2030. Under the policy, a subsidy of Rs50,000 for motorcycles and Rs200,000 for rickshaws had been earmarked with a total initial budget of Rs4bn, while the government had targeted the installation of 40 sites along the Karachi to Peshawar Motorway for EV charging stations and 3,000 charging stations nationwide. If these measures are rolled out consistently, cheaper and cleaner transportation could quickly be placed within reach of most Pakistanis, solving not one but three major challenges for the state.

Pakistan shells out about $6bn in yearly fuel imports while having a surplus installed electricity generation capacity. The latter has become a major burden for the exchequer owing to the capacity payments guaranteed to power generation companies, which raise tariffs if demand is insufficient. By pushing ordinary Pakistanis to adopt electric vehicles for everyday use, the government is aiming to not only reduce its fuel import bill but also to boost electricity demand and dilute the impact of capacity charges. This will have significant benefits for citizens, too: not only will the cost of adopting EVs be subsidised, but the lower announced tariff will also result in savings on fuel. Widespread adoption could also see electricity tariffs decline for everyone as higher electricity consumption dilutes painful capacity payments. There are also environmental benefits. According to government figures, transportation is responsible for 43pc of all airborne emissions in the country, and with major cities suffocating in smog, moving small vehicles to electric technologies will cut down a major source of pollution and allow citizens to breathe easier. Talk about a win-win solution.

Published in Dawn, January 19th, 2025