Initiative to provide Rs100.36 billion subsidy for electric bikes, rickshaws, loaders, cars, buses, and trucks; Phase-I to target 41,000 vehicles, Phase-II to support 78,170 vehicles in FY2025-26.
The federal government has unveiled a new initiative, Pakistan Accelerated Vehicle Electrification (PAVE), aimed at accelerating the adoption of electric vehicles (EVs) across the country. This initiative is part of efforts to promote clean, sustainable, and affordable transportation, reduce reliance on fossil fuels, and support the growth of the domestic electric vehicle manufacturing sector.
The initiative will provide a total subsidy of Rs100.36 billion over the next five years, until 2030, for electric bikes, rickshaws, loaders, cars, buses, and trucks.
The Engineering Development Board (EDB), under the Ministry of Industries and Production, is implementing Phase-I of the scheme, which is part of the Prime Minister’s Electric Vehicle Adoption Scheme under the New Energy Vehicles Policy (NEVP) 2025-30.
The Phase-I offers financial support for 41,000 electric vehicles, including 40,000 electric bikes and 1,000 electric rickshaws and loaders. Phase-II is set to extend subsidies to an additional 78,170 electric vehicles during the fiscal year 2025-26, with a subsidy of Rs8.95 billion.
The scheme operates under two main mechanisms: the self-finance scheme and the bank lease scheme. In the self-finance scheme, applicants pay the full cost of an electric bike to the manufacturer, after which a subsidy of up to Rs80,000 is reimbursed directly into the applicant’s account by the State Bank, following verification. The bank lease scheme offers two-wheeler and three-wheeler electric vehicles on easy installments at subsidised rates.
Since the formal launch of Phase-I, the subsidy disbursement process has commenced, and funds have already been transferred to the first set of verified applicants under both the self-finance and bank lease schemes.
To ensure smooth implementation, the EDB is working in close coordination with the Ministry of Industries and Production, State Bank, Punjab Information Technology Board, Nadra, participating banks, and approved original equipment manufacturers to ensure robust digital verification, transparency, and timely release of subsidies.
