Govt plans Rs. 100 billion EV subsidy by 2030

The government has started sending subsidy money to people who applied under the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme for electric bikes and rickshaws.

The subsidy is being given to applicants under both the Self Finance Scheme and the Bank Finance Scheme. This program was approved by the Prime Minister of Pakistan to help people buy electric bikes, rickshaws, and loaders across the country.

The PAVE Scheme is meant to promote clean, affordable, and environment-friendly transport in Pakistan. It also aims to reduce the country’s dependence on fuel and support local manufacturing of electric vehicles. Under this scheme, the government will provide a total subsidy of Rs. 100.36 billion over five years, up to 2030. This support will cover electric bikes, rickshaws, loaders, cars, buses, and trucks.

The Engineering Development Board (EDB), working under the Ministry of Industries and Production, is handling Phase-I of the Prime Minister’s Electric Vehicle Adoption Scheme under the New Energy Vehicles Policy (NEVP) 2025–2030.

In Phase-I, financial support is being provided for 41,000 electric vehicles. This includes 40,000 electric bikes and 1,000 electric rickshaws and loaders. Phase-II will support another 78,170 electric vehicles with a subsidy of Rs. 8.95 billion during 2025–26.

Under the Self Finance Scheme, applicants first pay the full price of the electric bike to the manufacturer. After verification, a subsidy of up to Rs. 80,000 is sent directly to the applicant’s bank account by the State Bank of Pakistan.

Under the Bank Lease Scheme, electric bikes and rickshaws are being offered on easy monthly installments through partner banks at subsidized rates. After the official launch of Phase-I, the subsidy process has now become active, and payments have already been made to the first group of approved applicants. More payments will be made in stages after verification.

The scheme is being carried out with the help of several institutions, including the EDB, Ministry of Industries and Production, State Bank of Pakistan, Punjab Information Technology Board, NADRA, participating banks, and approved manufacturers. To receive the subsidy, electric vehicles must be registered with the relevant federal or provincial authorities.