Revolutionising transport
Major cities in Pakistan are grappling with the challenges of transportation, pollution and the rising cost of fuel. In recent years, there has been a growing interest in electric vehicles (EVs) as a solution to these issues, and the recent decision by the Economic Coordination Committee (ECC) to provide financing facilities through the Prime Minister’s Youth Business & Agriculture Loan Scheme for e-bikes and e-rickshaws is a step in the right direction. This will indeed be a significant move towards promoting sustainable transportation in Pakistan.
The scheme, which offers a clean loan of up to Rs0.5 million at zero markup rate for repayment in three years, will make e-bikes and e-rickshaws more affordable for potential users. The target of providing this facility to 15,000 e-bikes and e-rickshaws in the current fiscal year, with plans to scale it up in the future shows the government’s commitment to promoting EVs in the country. The high cost of e-bikes with lithium batteries has been a barrier to their widespread adoption, especially during times of high inflation. With the subsidy being provided through the loan scheme, the average cost of e-bikes is expected to become more accessible for the general public. This will not only reduce the reliance on fossil fuels, but also contribute to lowering pollution levels and improving air quality. To boost this even further, the government must look to create awareness among the masses about the benefits of shifting to such sustainable modes of transport.
As with any policy initiative, there will be challenges in implementing the decision effectively. Ensuring the transparency and accountability of the scheme, coordinating with key stakeholders such as the State Bank of Pakistan and the National Rural Support Programme, and addressing any logistical or operational issues will be crucial to its success. With proper planning and execution, the promotion of e-bikes and e-rickshaws can have a transformative impact on the transport industry in Pakistan.
Published in The Express Tribune, April 17th, 2023.
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