Interest-free e-cab scheme in the offing

Ballotting among 28k applicants planned this month

LAHORE:

The Punjab government has announced that balloting for the e-taxi scheme will be held by the end of November. Officials say more than 28,000 people have applied, and the Transport Department has forwarded complete applicant data to the Bank of Punjab, which will oversee the balloting process.

After the draw, officials said, successful applicants will be contacted to deposit the required down payment. Those who submit the amount within the stipulated time will receive their electric taxis within three to four months.

The government launched the E-Taxi Scheme 2025 in mid-September, offering a five-year interest-free financing plan. In the pilot phase, 1,100 electric taxis imported from China will be distributed, including 100 reserved for women. To support implementation, the government is establishing a charging network and has developed an online portal to streamline applications and future documentation.

As per scheme terms, of the total 1,100 vehicles, 700 have been allocated for fleet owners and 400 for individual operators. Within the individual quota, 300 are designated for men and 100 for women. Fleet owners must apply for a minimum of ten taxis and register with transport network companies for commercial operations. Individual applicants must also be registered with a ride-hailing service before receiving their vehicle.

Backed by a government subsidy of Rs 3.5 billion, the scheme aims to promote clean and sustainable urban transport in Lahore. The maximum financing limit per vehicle is Rs 6.5 million.

Applicants are required to contribute 30 percent equity, while the government covers part of that amount. For individual men, the government will fund 50 percent of the equity; for women, the contribution increases to 60 percent. Fleet owners receive a subsidy ranging from 30 to 40 percent depending on fleet size. Each vehicle includes a tracking system, a panic button, and a battery-and-motor warranty valid for 300,000 kilometres or six years.

The scheme has attracted significant interest across the province. According to official figures, more than 66,000 registrations were initiated, resulting in over 28,000 completed applications, including 154 from fleet owners.

Only Punjab residents are eligible, and each individual may apply for one vehicle. A valid driving licence is mandatory. The interest-free loan covers up to Rs 4.55 million for individuals and up to Rs 1 billion for fleet owners, with a five-year tenure and a three-month grace period. Vehicles will remain registered in the name of the Bank of Punjab until the loan is fully repaid. The government will cover 100 percent of registration charges and applicable token taxes. Insurance is compulsory, and the loan is repayable through 57 equal monthly instalments.

Officials added that if a selected vehicle's price exceeds the financing cap, applicants must pay the difference upfront.

The Bank of Punjab may reject applications during screening due to verification issues, a weak credit profile, inaccurate information or regulatory concerns.

Vehicles under the scheme may operate anywhere in Punjab. Applicants can seek assistance or lodge complaints through the Bank of Punjab helpline. All applications were submitted online, and with demand exceeding the available quota, the final selection will now be conducted through electronic balloting.