Government Approves Rs. 9 Billion Subsidy Scheme for Electric Bikes and Rickshaws
The Economic Coordination Committee (ECC) of the Cabinet has officially approved a large-scale subsidy scheme to accelerate the adoption of electric bikes and rickshaws in Pakistan. The initiative, spearheaded by the Ministry of Industries and Production, aims to reduce fuel dependency and promote environmentally friendly transportation options across the country.
Two-Phase Launch Strategy
With a total allocation of Rs. 9 billion in the FY26 budget, the scheme will be implemented in two phases:
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Phase 1: 40,000 electric bikes and 1,000 electric rickshaws/loaders
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Phase 2: 76,000 electric bikes and 2,170 rickshaws/loaders
Key Features of the Electric Vehicle Subsidy Scheme
Subsidized Financing Options:
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Loans of up to Rs. 200,000 for electric bikes
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Loans of up to Rs. 880,000 for electric rickshaws/loaders
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Markup-free for borrowers (markup cost fully covered by the government)
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Financing available under both conventional and Islamic banking
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Loan tenures: 2 years for bikes, 3 years for rickshaws/loaders
Equity and Guarantee Support:
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Government contribution:
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Rs. 50,000 per electric bike
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Rs. 200,000 per electric rickshaw/loader
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80:20 debt-to-equity ratio
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20% portfolio guarantee on a first-loss basis
Who Can Apply?
All Pakistani citizens, including those from Gilgit Baltistan and Azad Jammu & Kashmir, can apply under the following age limits:
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Electric bikes: 18–65 years
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Electric rickshaws/loaders: 21–65 years
Quota Allocation:
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Based on 2023 population census
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10% reserved for Balochistan
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25% quota for women (bikes)
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10% for commercial users such as delivery riders
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For rickshaws, individuals prioritized, with up to 30% quota for fleet operators
Application and Selection Process
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Applications will be invited online
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If applications exceed the quota, electronic balloting will be conducted
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Each applicant can only receive one vehicle under the scheme
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All stages—application, tracking, and selection—will be managed through a fully digitalized platform
Role of Manufacturers and EDB
Only pre-qualified manufacturers approved by the Engineering Development Board (EDB) will participate in the scheme. Selection will be based on:
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Technical capability
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Financial strength
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After-sales service
A curated list of approved electric bikes and rickshaws will be made available to ensure quality, safety, and performance.
Transparency and Oversight
To ensure transparency:
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A third-party audit will be conducted
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Regular audits will be carried out by the Auditor General of Pakistan
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Product quality checks and manufacturer compliance will also be validated independently
Electric vehicles supplied under the scheme will feature official government branding for visibility and authenticity.
Flexibility in Implementation
The Steering Committee will oversee the scheme and can make minor adjustments such as:
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Reallocating unutilized quotas
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Adjusting the number of vehicles
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Refining eligibility criteria — all within the allocated budget
Stay updated as applications for this exciting opportunity are expected to open soon. Whether you’re a delivery rider, daily commuter, or fleet operator, this is a golden chance to go electric with government support.
