Pakistan has begun transferring subsidies to applicants under its Pakistan Accelerated Vehicle Electrification (PAVE) Scheme, targeting electric bikes and rickshaws. The government says this move will support affordable, clean transportation and boost the country’s domestic electric vehicle market.
The subsidy program covers beneficiaries under both the Self Finance Scheme and the Bank Finance Scheme. It follows approval from the Prime Minister for electric bikes, rickshaws, and loaders across the nation. The PAVE Scheme is part of a larger effort to reduce reliance on fossil fuels while promoting sustainable mobility. A total of Rs. 100.36 billion has been allocated over five years, until 2030, for electric bikes, rickshaws, loaders, cars, buses, and trucks.
Phase I of the initiative is being implemented by the Engineering Development Board (EDB) under the Ministry of Industries and Production. This phase falls under the New Energy Vehicles Policy (NEVP) 2025–2030 and provides financial and capital subsidies for 41,000 electric vehicles nationwide. These include 40,000 electric bikes, 1,000 electric rickshaws, and loaders. Phase-II will extend support to an additional 78,170 vehicles with Rs. 8.95 billion in subsidies during 2025–26.
Under the Self Finance Scheme, applicants pay the full price of the electric vehicle to the manufacturer. After verification, a subsidy of up to Rs. 80,000 is reimbursed directly into the applicant’s account through the State Bank of Pakistan. Meanwhile, the Bank Lease Scheme allows buyers to acquire two- and three-wheelers through easy installments at subsidized rates via participating banks.
With Phase I now fully operational, the first batch of verified applicants has received subsidy payments. Further disbursements will continue gradually under the approved verification framework.
The PAVE Scheme is coordinated among multiple agencies, including the EDB, Ministry of Industries and Production, State Bank of Pakistan, Punjab Information Technology Board, NADRA, participating banks, and approved OEMs. Eligibility for subsidies also requires mandatory registration of electric vehicles with federal or provincial authorities.