The federal government of Pakistan will provide a subsidy for 116,000 electric bikes and 3,170 e-rickshaws/loaders.
The subsidy, estimated to cost Rs100 billion, will be provided over the next five years. The government is formally launching the scheme on August 14, the Independence Day of Pakistan.
The scheme is part of the government’s National Electric Vehicle Policy.
Who is eligible:
In the first phase, the government will distribute subsidies for 40,000 e-bikes and 1,000 e-rickshaws, with reserved quotas for Balochistan, students, and women.
In the second phase, 76,000 electric bikes and 2,170 e-loaders/rickshaws will be provided to applicants.
The government will ensure a transparent and digital tracking process for selecting applicants. If applications exceed the available quota, electronic balloting will be held. Anyone aged between 18 and 65 years is eligible for the e-bike subsidy, while those aged between 21 and 65 years can apply for e-rickshaws. The authorities will determine the process.
Subsidy:
A person can secure a bank loan of up to Rs200,000 for an e-bike and Rs880,000 for an e-rickshaw/loader. The loan for an e-bike must be repaid within two years, and for an e-rickshaw within three years. The markup is 2.75 percent plus KIBOR (Karachi Interbank Offered Rate). For example, if KIBOR is 10 percent, the total interest will be 12.75 percent.
The government will cover all the interest, plus provide a subsidy of Rs50,000 on an e-bike and Rs200,000 on an e-rickshaw/loader.
Quota:
The government has reserved 25% of the e-bike quota for women and 10% for individuals who will use e-bikes for delivery purposes. It has also reserved a 30% quota for fleet operators.
The Punjab government has separately launched an e-vehicle distribution policy. It is also starting e-commercial buses in Lahore and other major cities in the coming days.
Separately, the government has entered into different agreements with China for development of electronic vehicles (EVs) in Pakistan. Planning Minister Ahsan Iqbal announced this during his visit to China on Wednesday.
