The federal government has begun transferring subsidy amounts to successful applicants under the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme, marking a key step toward promoting electric mobility across the country.

The subsidy disbursement covers beneficiaries under both the Self Finance Scheme and the Bank Finance Scheme, as approved by the Prime Minister. The initiative supports the provision of electric bikes, rickshaws, and loaders to eligible applicants nationwide.

The PAVE Scheme aims to accelerate Pakistan’s transition to clean, affordable, and sustainable transport while reducing dependence on fossil fuels. It also seeks to encourage domestic manufacturing of electric vehicles and support the local EV ecosystem. Under the programme, a total subsidy of Rs100.36 billion will be provided over five years until 2030 for electric bikes, rickshaws, loaders, cars, buses, and trucks.

Phase-I of the Prime Minister’s Electric Vehicle Adoption Scheme is being implemented by the Engineering Development Board under the Ministry of Industries and Production as part of the New Energy Vehicles Policy 2025–2030. This phase provides financial and capital subsidy support for 41,000 electric vehicles, including 40,000 electric bikes and 1,000 electric rickshaws and loaders.

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Under the Self Finance Scheme, applicants pay the full price of the electric bike upfront, after which a subsidy of up to Rs80,000 is reimbursed directly into their bank account by the State Bank of Pakistan following verification. Under the Bank Lease Scheme, electric vehicles are offered on easy installments at subsidized rates through participating banks.

Officials confirmed that subsidy payments to verified applicants have already started and will continue in phases under the approved framework.