In a major push towards sustainable transportation and clean energy adoption, the federal government of Pakistan has introduced a cost-sharing scheme for electric bikes (e-bikes) and electric rickshaws/loaders, aiming to cut carbon emissions, reduce fossil fuel dependency, and make electric mobility affordable for citizens.
As per a circular issued by the State Bank of Pakistan (SBP) to all bank heads, the ambitious program plans to finance approximately 116,000 e-bikes and 3,170 e-rickshaws/loaders during Fiscal Year 2025–26. The scheme will be implemented in two phases:
- Phase I: 40,000 e-bikes and 1,000 e-rickshaws/loaders
- Phase II: 76,000 e-bikes and 2,170 e-rickshaws/loaders
To ensure inclusive participation, the initiative reserves 25% of e-bikes for women, 10% for business users such as delivery riders and couriers, and 30% of e-rickshaws/loaders for fleet operators.
Key Financing Features:
- Financing limit: Rs200,000 for e-bikes, Rs880,000 for e-rickshaws/loaders
- Capital subsidy: Up to Rs50,000 (e-bikes), Rs200,000 (rickshaws/loaders)
- Debt-to-equity ratio: 80:20; borrower’s contribution waived if fully subsidized
- Loan tenure: 2 years (e-bikes), 3 years (rickshaws/loaders)
- End-user markup: 0%, fully subsidized by the government
- EMIs: Principal + insurance only
- Processing charges: None
- Credit loss guarantee: 20% portfolio guarantee (first-loss basis)
The scheme will be available through both conventional and Islamic banking channels, all integrated via a centralized digital platform overseen by the Ministry of Industries and Production (MoI&P) and the Engineering Development Board (EDB).
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The launch of this scheme is seen as a strategic step toward modernizing Pakistan’s automotive sector, fostering green mobility, and offering an affordable and environment-friendly transport alternative for individuals and businesses alike.
