Everything You Need to Know About Pakistan’s Electric Bikes Subsidy Scheme

The Economic Coordination Committee (ECC) of the federal cabinet has formally approved a subsidy scheme aimed at accelerating the adoption of electric bikes and rickshaws in Pakistan. The summary, presented by the Ministry of Industries and Production, outlines a comprehensive national-level framework for rolling out the initiative.

According to official documents, the federal government has earmarked Rs. 9 billion in the FY26 budget for this purpose, which is expected to support the purchase of approximately 116,000 electric bikes and 3,170 electric rickshaws/loaders across the country.

Two-Phase Rollout Plan Finalized

The scheme will be implemented in two distinct phases to allow for refinements based on operational feedback and performance metrics.

• Phase One will cater to 40,000 electric bikes and 1,000 electric rickshaws/loaders.
• Phase Two will extend the program to the remaining 76,000 electric bikes and 2,170 rickshaws/loaders.

This phased approach will help authorities optimize implementation and address any unforeseen issues before scaling up.

Key Features of the Subsidy and Financing Framework

The subsidized financing structure includes multiple attractive incentives to encourage uptake:

• Loan Cap: Up to Rs. 200,000 for electric bikes and Rs. 880,000 for rickshaws/loaders.
• Markup Rate: 6-month KIBOR + 2.75%, with maximum tenure of 2 years for bikes and 3 years for rickshaws.
• Markup Burden: The government will cover the entire markup cost, making the loans interest-free for borrowers.
• Equity Support: Government to contribute up to Rs. 50,000 for electric bikes and Rs. 200,000 for rickshaws/loaders toward the equity component.
• Financing Type: Both conventional and Islamic financing options will be available.
• Portfolio Guarantee: 20% first-loss guarantee to be provided by the government.

Eligibility and Quota Allocation

The scheme is open to all Pakistani citizens, including residents of Gilgit-Baltistan and Azad Jammu and Kashmir (AJK), subject to the following age limits:

• Electric Bike Applicants: Must be between 18 to 65 years of age.
• Electric Rickshaw Applicants: Must be between 21 to 65 years of age.

Provincial Quotas will be distributed according to the 2023 census, with 10% specifically reserved for Balochistan, which will be adjusted from Punjab and Sindh’s shares.

Other key allocation criteria include:

• Women’s Quota: At least 25% reserved for women for electric bikes.
• Commercial Users: Up to 10% of electric bike quotas for delivery riders and couriers.
• Rickshaw Priority: First priority to individuals; remaining units (up to 30%) may go to fleet operators.

Each applicant will be eligible to purchase only one vehicle under the scheme.

Transparent and Digitized Application Process

Applications for the scheme will be solicited through public advertisements and managed via a fully digital platform to ensure end-to-end transparency. If applications exceed the allocated quotas for a province or segment, selection will be done through electronic balloting.

Manufacturers and Product Standards

Only those manufacturers or assemblers who are shortlisted by the Engineering Development Board (EDB) based on technical capabilities, financial soundness, and after-sale service infrastructure will be allowed to participate.

EDB will also finalize a pre-approved list of electric vehicles (bikes and rickshaws/loaders) to be offered under the scheme. All products must meet quality, performance, and safety criteria set by the Steering Committee.

Successful applicants will be allowed to choose from this range of pre-qualified options, promoting competition and ensuring value for money.

Oversight, Branding, and Adjustments

To ensure accountability, the scheme will be subject to a third-party audit alongside regular audits from the Auditor General of Pakistan. Product quality and manufacturer performance will also undergo third-party validation.

Electric vehicles issued under the program will carry official branding approved by the Steering Committee.

Minor changes such as adjustments in quotas or numbers may be introduced during implementation to utilize unused allocations — as long as these remain within the approved budget limits.