Federal government has announced a major initiative to promote electric vehicles by offering 116,000 electric bikes on a two-year instalment plan. This move aims to reduce reliance on petrol and diesel vehicles, encouraging the use of eco-friendly alternatives and supporting sustainable transportation across the country.
Sources indicate that the subsidy and installment scheme for electric bikes is in its final stages of preparation. Prime Minister Shehbaz Sharif is expected to unveil the new electric vehicle (EV) policy on Independence Day.
The scheme is being developed with the collaboration of the State Bank and the Bank Association. It will offer a subsidy of Rs50,000 for each electric bike and rickshaw. The scheme will be available to individuals aged 18 to 65 years.
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The price of each electric bike is estimated to be around Rs250,000, with the subsidy reducing the upfront cost. The remaining amount, over Rs200,000, will be payable in installments.
According to sources, 17 companies have successfully obtained licenses to manufacture electric bikes under the scheme. The policy aims to have 30% of vehicles in the country be electric by 2030.
To ensure the success of the EV policy, the government will provide subsidies worth Rs100 billion over the next five years. The breakdown of this subsidy includes Rs9 billion for the current fiscal year, Rs19 billion for 2027, Rs24 billion for 2028, and over Rs26 billion for 2029. For 2030, approximately Rs23 billion will be allocated.
By 2030, the policy targets the production of 2.213 million electric vehicles. The goal for 2040 is to have 90% of vehicles be electric, with the target for a fully zero-emission vehicle fleet set for 2060.
The promotion of electric vehicles is expected to reduce the cost of imported fuel and eliminate environmental pollution caused by traditional vehicles.
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