ISLAMABAD: The government has approved the setting up of 40 electric vehicle (EV) charging stations along motorways at a power tariff of Rs39.75 per unit in the initial draft of EV policy.
The government is also mulling over extending financing to incentivise the production of electric two and three-wheelers.
Sources revealed that in a recent meeting of the committee on EV policy, the Pakistan Banks Association (PBA), represented by Chairman Zafar Masud and others, presented a term sheet for providing incentives to stimulate the demand for electric two and three-wheelers.
Zafar Masud suggested offering Karachi Inter-bank Offered Rate (Kibor) plus 3% to incentivise banks but the chair noted that interest rate should not exceed Kibor plus 2.5%. Masud proposed a debt-to-equity ratio of 80:20, but the chair suggested a ratio of 70:30, as allowed by the State Bank of Pakistan (SBP).
Secretary of the Ministry of Industries mentioned that it could be discussed with the SBP. He stressed the importance of providing insurance coverage for EVs, including battery theft.
Overall, the committee was satisfied with the proposed financing mechanism and it was agreed that the industries ministry and banks would refine the term sheet in collaboration with the Finance Division and the SBP.
A report of the working group on identifying 40 locations on motorways was approved. In this regard, the ministries of communication, power, petroleum and the Federal Board of Revenue, along with the Central Power Purchasing Agency-Guarantee (CPPA-G), were requested to resolve the issues facing the oil marketing companies (OMCs) to pave the way for establishing charging stations within the next three months.
The committee on EV policy was satisfied with CPPA-G’s proposal for a power tariff of Rs39.75 per unit for the charging stations.
Meeting participants agreed, in principle, on the financing plan for electric two and three-wheelers, presented by the PBA, however, it would be finalised in consultation with the SBP and Finance Division.
A working group was formed to identify an appropriate customs duty and tax structure to encourage the adoption of EVs and their local manufacturing.
Another working group was set up to implement the financing plan, aimed at increasing the demand for EVs. –Agencies
