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Subsidy Transfers Begin for E-Bikes and Rickshaws Under PAVE Scheme

Carr.pk
Carr.pk
3 min read
Subsidy Transfers Begin for E-Bikes and Rickshaws Under PAVE Scheme - Carr.pk

According to an official press release, the Government of Pakistan has formally started the subsidy disbursement process under the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme, with e-bike subsidy transfers set to begin from Monday onwards for successful candidates. 

The subsidy is being released for applicants approved under both the Self Finance Scheme and the Bank Finance (Lease) Scheme, aimed at providing electric bikes, rickshaws, and loaders to the general public across Pakistan. The PAVE Scheme has been approved by the Prime Minister of Pakistan to promote clean, affordable, and sustainable transportation nationwide.

What Is the PAVE Scheme?

The Pakistan Accelerated Vehicle Electrification (PAVE) Scheme is a flagship government initiative designed to reduce reliance on fossil fuels, lower carbon emissions, and encourage the local manufacturing of electric vehicles (EVs). 

As per the press release, a total subsidy of Rs. 100.36 billion will be provided over five years until 2030, covering electric bikes, rickshaws, loaders, cars, buses, and trucks.

Phase-I Implementation Details

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

Phase-I includes financial and capital subsidy support for 41,000 electric vehicles, comprising:

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

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

How the E-Bike Subsidy Works

According to the press release:

  • Under the Self Finance Scheme, applicants pay the full price of the electric bike upfront. A subsidy of up to Rs. 80,000 is later reimbursed directly into the applicant’s bank account by the State Bank of Pakistan (SBP) after verification.
  • Under the Bank Lease Scheme, electric two- and three-wheelers are being offered on easy installments at subsidized rates, making electric mobility more accessible.

Subsidy Transfers Now Underway

Following the formal launch of Phase-I, the subsidy disbursement process has entered the operational stage. Subsidies have already been transferred to the first batch of verified applicants, while e-bike subsidy amounts will start reaching candidates’ bank accounts from Monday onwards, as stated in the press release. Further disbursements will continue progressively.

Digital Verification and Transparency

The scheme is being implemented through coordinated efforts of EDB, MoIP, SBP, Punjab Information Technology Board (PITB), NADRA, participating banks, and approved OEMs. This integrated digital system ensures transparency, verification, and timely transfer of subsidies to eligible beneficiaries.

Important Note for Applicants

Authorities have reiterated that only electric vehicles registered with federal and provincial authorities are eligible for subsidy claims. Without proper registration, applicants will not be able to receive the subsidy.

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