The government has started the transfer of subsidy amounts to applicants under the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme for electric bikes and rickshaws.
The subsidy disbursement covers beneficiaries under both the Self Finance Scheme and the Bank Finance Scheme, as approved by the Prime Minister of Pakistan, for the provision of electric bikes, rickshaws, and loaders across the country.
The PAVE Scheme aims to accelerate Pakistan’s shift toward clean, affordable, and sustainable mobility while reducing reliance on fossil fuels and encouraging domestic electric vehicle manufacturing. Under the initiative, a total subsidy of Rs. 100.36 billion will be provided over five years until 2030 for electric bikes, rickshaws, loaders, cars, buses, and trucks.
The Engineering Development Board (EDB), operating under the Ministry of Industries and Production, is implementing Phase-I of the Prime Minister’s Electric Vehicle Adoption Scheme under the New Energy Vehicles Policy (NEVP) 2025–2030.
Phase-I provides financial and capital subsidy support for 41,000 electric vehicles nationwide, including 40,000 electric bikes and 1,000 electric rickshaws and loaders. Phase-II will extend facilitation to an additional 78,170 electric vehicles with a total subsidy of Rs. 8.95 billion during 2025–26.
Under the Self Finance Scheme, successful applicants pay the full price of the electric bike to the manufacturer, after which a subsidy of up to Rs. 80,000 is reimbursed directly into the applicant’s account by the State Bank of Pakistan following scrutiny.
Under the Bank Lease Scheme, electric two- and three-wheelers are being provided on easy installments at subsidized rates through participating banks. Following the formal launch of Phase-I, the capital subsidy disbursement process has entered the operational stage, with subsidies already transferred to the first set of verified applicants. Further disbursements will continue progressively under the approved verification framework.
The scheme is being implemented through coordination among the EDB, Ministry of Industries and Production, State Bank of Pakistan, Punjab Information Technology Board, NADRA, participating banks, and approved OEMs, while eligibility for subsidy claims is subject to mandatory registration of electric vehicles with federal or provincial authorities.
