The federal government has begun transferring subsidy amounts to approved applicants under its electric vehicle initiative, marking a major step toward cleaner transport in Pakistan. The subsidy rollout is part of the Pakistan Accelerated Vehicle Electrification Scheme, also known as the PAVE Scheme, which focuses on electric bikes, rickshaws, and loaders across the country.
The initiative aims to reduce fuel imports, cut pollution, and promote affordable transport options. Officials say the program will also support local electric vehicle manufacturing and help Pakistan move toward sustainable mobility by 2030.
Government Push for Electric Transport
Under the PAVE Scheme, the government plans to provide a total subsidy of Rs 100.36 billion over five years. This support will cover electric bikes, rickshaws, loaders, cars, buses, and trucks. The subsidy applies to applicants under both the Self Finance Scheme and the Bank Finance Scheme, which were approved by the Prime Minister.
Phase One of the program is currently underway. It targets the distribution of 41,000 electric vehicles nationwide. This includes 40,000 electric bikes and 1,000 electric rickshaws and loaders. The Engineering Development Board is implementing this phase under the New Energy Vehicles Policy for 2025 to 2030.
Meanwhile, Phase Two will extend the program further. It will support an additional 78,170 electric vehicles during the 2025 to 2026 period. The allocated subsidy for this phase stands at Rs 8.95 billion.
The Self Finance Scheme allows applicants to pay the full price of an electric bike upfront. After verification, the State Bank of Pakistan reimburses a subsidy of up to Rs 80,000 directly into the applicant’s bank account. Authorities say this process ensures transparency and quick transfers.
In contrast, the Bank Lease Scheme offers electric two and three wheelers on easy installments. Participating banks provide these vehicles at subsidized rates, making them more accessible to the public. Subsidy payments under this scheme have already started for verified applicants.
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Several institutions are working together to run the program smoothly. These include the Ministry of Industries and Production, the State Bank of Pakistan, NADRA, the Punjab Information Technology Board, participating banks, and approved manufacturers. Electric vehicle registration with federal or provincial authorities remains mandatory for subsidy eligibility.
The government believes this large scale subsidy will encourage people to shift toward electric transport. Experts also expect the move to lower carbon emissions, reduce fuel costs, and create new opportunities in Pakistan’s growing electric vehicle sector.
