SBP offers interest-free financing for e-bikes, rickshaws: Here’s who qualifies

The State Bank of Pakistan launched an interest-free financing scheme for the purchase of electric bikes, rickshaws and loaders as part of efforts to boost energy efficiency and green technologies in the automotive sector.

Under the initiative, the federal government will provide a capital subsidy of up to Rs50,000 for two-wheelers and Rs200,000 for three-wheelers.

Banks will extend both conventional and Islamic financing facilities, capped at Rs200,000 for e-bikes and Rs880,000 for rickshaws or loaders. The maximum loan tenor will be two years for bikes and three years for rickshaws or loaders.

“The Federal Government has introduced a ‘Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders’ with a view to promote energy efficiency and transition to green technologies in the automotive sector,” the central bank circular read.

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The scheme will cover financing for around 116,000 e-bikes and 3,170 e-rickshaws/loaders during FY2025-26 in two phases. In the first phase, 40,000 e-bikes and 1,000 e-rickshaw/loaders will be distributed. The second phase will include the remaining 76,000 e-bikes and 2,171 rickshaws/loaders.

To ensure inclusivity, 25% of e-bikes are reserved for women. Another 10% quota is allocated for those using e-bikes for courier or delivery services, while 30% of rickshaws/loaders are earmarked for fleet operators. Eligibility for fleet operators will be determined by a Steering Committee.

All Pakistani citizens, including those in Gilgit-Baltistan and Azad Jammu and Kashmir, can apply for e-bikes. Fleet operators may apply for rickshaws and loaders. Borrowers must make a minimum 20% equity contribution, though the subsidy may fully cover this portion. Any amount beyond the subsidy will be paid upfront by the borrower.

The bank pricing has been fixed at six-month KIBOR plus 2.75%, but the end-user rate will remain at 0% as the government covers the full mark-up subsidy. The Engineering Development Board has shortlisted manufacturers and models. Original Equipment Manufacturers will be responsible for timely delivery and after-sales service under the scheme.

Rs100b okayed for e-bikes, rickshaws

Last month, the government approved the first phase of a Rs100 billion scheme to provide electric bikes and rickshaws at a subsidised cost by collecting Rs122 billion from owners of conventional cars, aimed at increasing the number of environment-friendly vehicles to one-third.

The Economic Coordination Committee (ECC) of the cabinet approved the first phase of the plan, which was designed to ensure the provision of 116,000 electric bikes and 3,170 rickshaws by offering up to Rs200,000 in interest-free loans and equity.

Chaired virtually by Finance Minister Muhammad Aurangzeb, the ECC also cleared a Rs30 billion subsidy to settle dues under the foreign remittances initiative from a backlog of Rs59 billion.

Also Read: High achievers from public colleges awarded e-bikes

A finance ministry statement said the ECC had approved a summary submitted by the Ministry of Industries and Production regarding the implementation of the subsidy scheme to promote the adoption of electric bikes and rickshaws.

Under the plan, about 116,000 electric bikes and 3,170 electric rickshaws and loaders would be introduced in two phases. In the initial phase, expected to be launched by the prime minister, 40,000 electric bikes and 1,000 electric rickshaws and loaders would be rolled out.

The government also approved the distribution of 219 free-of-cost electric bikes to the two top position holders in federal colleges across four disciplines. The maximum cost of the bike was capped at Rs250,000 under the scheme. The finance ministry said a budgetary provision of Rs9 billion had already been made for the current fiscal year to finance the initiative.

As part of new IMF loan conditions, the government had imposed a 1–3% levy on car owners in the budget, estimated to raise Rs122 billion from conventional fuel-based vehicle users.

Also Read: Govt to offer electric bikes on two-year instalments

Of this amount, Rs100 billion would be allocated to subsidies for promoting environment-friendly vehicles. The goal was to ensure that at least 30% of vehicles sold annually would be based on clean energy by 2030.

The scheme provided Rs50,000 in equity and Rs200,000 in interest-free loans for electric bikes. For three-wheeler rickshaws, the equity component was Rs200,000 and the interest-free loan Rs180,000. Every citizen between 18 and 65 years of age was made eligible for the scheme, with a 25% quota reserved for women.

Subsidised bikes and rickshaws were to be distributed according to provincial population, with Balochistan allocated an additional 10% quota adjusted against Punjab and Sindh.

The ECC also approved Rs30 billion in subsidies to clear the backlog of the foreign remittances initiative. The finance ministry said Rs30 billion would be released this quarter through a technical supplementary grant, with the remaining funds to be considered from savings in upcoming quarters.

Sindh distributes scooties under 'Pink Scheme'

Earlier, Sindh also announced free electric scooters for women under the "Pink Scooters Program". Pakistan Peoples Party Chairman Bilawal Bhutto Zardari handed over keys to women beneficiaries of the “Pink Scooty Scheme,” a government initiative in Sindh that provides free electric scooters to women.

The scheme, launched by the Sindh Transport Department, aims to improve women’s mobility and create greater access to transportation and employment opportunities across the province.

Eligible applicants must be permanent residents of Sindh, hold a valid driving license, and be either enrolled in an educational institution or employed. Beneficiaries must also agree not to sell or sublet the scooty for a minimum of seven years.