Punjab Plans Rs. 57 Billion Subsidy to Promote Electric Vehicles

The Punjab government is considering a Rs. 57 billion subsidy package to promote the adoption of electric vehicles (EVs) across the province, as part of a broader push to cut fuel imports and curb air pollution. The provincial transport department has submitted the proposal for approval, according to official sources.

Under the plan, the government aims to offer direct subsidies on electric bikes, rickshaws, cars, buses, and commercial vehicles. Proposed incentives include Rs. 20,000 to Rs. 30,000 for electric bikes, Rs. 25,000 for electric rickshaws, Rs. 100,000 for small electric cars, and Rs. 200,000 for larger electric cars. Buses and commercial EVs could receive subsidies ranging between Rs. 400,000 and Rs. 500,000.

The proposal also focuses on building supporting infrastructure. Authorities plan to install 1,200 Level-One charging points in Lahore, alongside 400 battery swapping stations and 300 fast-charging facilities. Investors setting up charging stations would receive capital subsidies and tax concessions, while petrol pumps converted into charging hubs may be exempted from property tax.

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Additionally, the plan includes establishing battery testing laboratories, incentives for battery recycling plants, and the phased conversion of government and public transport fleets to electric vehicles. Officials say the initiative targets lower fuel import bills and long-term environmental benefits.