Tag Archive: Pakistan

  1. Subsidy transfers begin for electric motorbikes and rickshaws in Pakistan

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    Source: PakWheels , AajEnglishTV

    The Government of Pakistan has officially begun disbursing subsidies under the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme, aimed at promoting clean, affordable, and sustainable transportation across the country.

    The subsidies are available to applicants approved under both the Self Finance Scheme and the Bank Finance (Lease) Scheme, with the first roll out of payments for successful motorbike applicants from 26th January.

    What is the PAVE Scheme?

    The Pakistan Accelerated Vehicle Electrification (PAVE) Scheme is a flagship initiative aimed at reducing fossil fuel dependence, lowering carbon emissions, and encouraging local manufacturing of electric vehicles (EVs).

    According to the Pakistani Government’s press release, a total subsidy of Rs. 100.36 billion (approximately €311 million) will be provided over five years until 2030. The program covers electric motorbikes, rickshaws, loaders, cars, buses, and trucks.

    Phase-I implementation details

    Phase-I of the Prime Minister’s Electric Vehicle Adoption Scheme, under the New Energy Vehicles Policy (NEVP) 2025–2030, is being implemented by the Engineering Development Board (EDB) under the Ministry of Industries and Production (MoIP).

    Phase-I which includes financial and capital subsidy support for 41,000 electric vehicles is currently underway, consisting of:

    • 40,000 electric motorbikes
    • 1,000 electric rickshaws and loaders

    Phase-II will later support an additional 78,170 electric vehicles, with a total subsidy allocation of Rs. 8.95 billion during FY 2025–26.

    How the e-motorbike subsidy works

    There will be two types of subsidy schemes:

    Self Finance Scheme: Applicants pay the full price upfront, and a subsidy of up to Rs. 80,000 (approximately €245) is reimbursed directly into the applicant’s bank account by the State Bank of Pakistan (SBP) after verification.

    Bank Lease Scheme: Electric two- and three-wheelers are available on easy instalments at subsidised rates, making electric mobility more accessible.

    Digital verification and transparency

    The scheme is being implemented through a coordinated digital system involving EDB, MoIP, SBP, Punjab Information Technology Board (PITB), NADRA, participating banks, and approved OEMs. Officials said this integrated approach ensures transparency, verification, and timely subsidy transfers.

    Authorities have emphasised that only electric vehicles registered with federal and provincial authorities are eligible for subsidy claims. Vehicles without proper registration will not qualify for financial support.

  2. Pakistan government begins the promotion of electric motorcycles in an effort to reduce fuel-spending

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    Source: DND, D. Naeem

    In response to the energy crisis and rising fuel-import costs, the Government of Pakistan has given a briefing on national initiatives to lower fuel consumption. This includes the significant promotion of LEVs such as electric motorcycles.

    At the National Energy Conservation Policy conference, Pakistan’s Defence Minister, Khawaja Asif, proposed the shift away from conventional combustion engine motorcycles. He suggested that the change would benefit individuals, the economy, and the environment, plus reduce the country’s annual petrol spending – currently Pakistan spends 3 billion USD on petrol to power motorcycles each year. The new initiative aims to gradually phase out petrol-powered motorcycles completely.

    While the initial purchase point is higher, the government of Pakistan has outlined how the bikes can be more cost-effective throughout the product’s lifetime. Financial aid to promote the shift to electric power is currently under consideration.