Pakistan Seeks French Support for Green Fund Access to Drive EV Transition 

A day after announcing a significant reduction in power tariffs for Electric Vehicle Charging Stations (EVCS), Pakistan reached out to France on Thursday for support in accessing its Green Fund. This initiative aims to facilitate the transition of conventional small vehicles to electric technology, promoting a cleaner environment and reducing oil import dependency. 

Power Minister Awais Ahmad Khan Leghari formally discussed the proposal with French Ambassador Nicolas Galey, emphasizing the need for financial and technical assistance to convert motorbikes, three-wheelers, and small vehicles (up to 800cc) from fossil fuels to electric engines. The government estimates that such conversions, costing between Rs50,000 and Rs150,000 per unit, could save approximately $6 billion in annual petrol imports for Pakistan’s 10 million motorbikes alone. 

Earlier, the minister announced a 44% reduction in EVCS power rates, bringing them down from Rs71.10 to Rs39.70 per unit, including taxes, pending formal regulatory approval. 

Push for EV Adoption and Economic Reforms 

Mr. Leghari briefed the French ambassador on Pakistan’s Electric Vehicle Policy, highlighting its potential to save billions of dollars in fuel costs, lower transportation expenses, and reduce environmental pollution. He also discussed plans for an upcoming Wheeling Policy to enhance electricity distribution efficiency, surplus power auctions, and fostering a competitive energy market by gradually phasing out government involvement in the power business. 

The ambassador was informed about significant reforms, including the introduction of independent boards in most distribution companies, improved recovery rates, reduced line losses, and the promotion of solar energy. Mr. Galey praised Pakistan’s transparent reforms and assured France’s willingness to explore financial and technical support for its energy and EV transition plans. 

Economic and Environmental Impact of EV Transition 

The Power Division highlighted the transformative impact of electric vehicles. Converting motorcycles to electric engines at an average cost of Rs50,000 could achieve a return on investment within 3–4 months while conserving foreign exchange. Similarly, transitioning three-wheelers to electric technology for Rs100,000 per unit is expected to lower urban travel costs, reduce fares, and curtail air pollution. These changes could also lower urban goods transportation costs, stabilizing essential commodity prices. 

New Energy Vehicle Policy 2025 

To address challenges in electric vehicle adoption and production, the government is developing the New Energy Vehicle (NEV) Policy 2025. Finance Minister Muhammad Aurangzeb chaired a meeting with stakeholders, including officials from the industries, commerce, and climate change ministries, as well as the State Bank of Pakistan and the Federal Board of Revenue. 

Discussions focused on overcoming barriers to EV production, improving manufacturing processes, addressing infrastructure requirements, and streamlining supply chains. The finance minister called for timely development and implementation of the NEV Policy 2025–30, aligning it with Pakistan’s environmental and economic priorities to accelerate the shift to clean energy in the transportation sector.