The government has begun transferring subsidy amounts to successful applicants under the Pakistan Accelerated Vehicle Electrification scheme for electric bikes and rickshaws, marking an important step toward promoting clean transportation across the country. The subsidy payments cover beneficiaries approved under both the self finance scheme and the bank finance scheme, in line with approvals granted by the Prime Minister of Pakistan for the distribution of electric bikes, rickshaws, and loaders nationwide.
The PAVE scheme is designed to speed up Pakistan’s transition to clean, affordable, and sustainable mobility solutions. Its broader objective is to reduce dependence on fossil fuels while encouraging local manufacturing of electric vehicles. Under this initiative, the government has allocated a total subsidy of Rs. 100.36 billion over a five-year period ending in 2030, covering electric bikes, rickshaws, loaders, cars, buses, and trucks.
Implementation of Phase I of the Prime Minister’s Electric Vehicle Adoption Scheme is being carried out by the Engineering Development Board under the Ministry of Industries and Production, as part of the New Energy Vehicles Policy 2025–2030. Phase I focuses on providing financial and capital subsidy support for 41,000 electric vehicles across Pakistan, including 40,000 electric bikes and 1,000 electric rickshaws and loaders. Phase II is planned to extend support to an additional 78,170 electric vehicles, with a total subsidy allocation of Rs. 8.95 billion during the 2025–26 period.
Under the self finance scheme, approved applicants initially pay the full price of the electric bike to the manufacturer. After verification and scrutiny, a subsidy of up to Rs. 80,000 is reimbursed directly into the applicant’s bank account by the State Bank of Pakistan. This process ensures transparency while easing the financial burden on buyers.
For applicants opting for the bank lease scheme, electric two- and three-wheelers are being offered on easy installment plans at subsidized rates through participating banks. Following the official launch of Phase I, the capital subsidy disbursement process has moved into the operational phase, with subsidies already transferred to the first group of verified beneficiaries. Further payments will continue gradually under the approved verification mechanism.
The scheme is being implemented through close coordination among multiple institutions, including the Engineering Development Board, Ministry of Industries and Production, State Bank of Pakistan, Punjab Information Technology Board, NADRA, participating banks, and approved original equipment manufacturers. Eligibility for subsidy claims depends on mandatory registration of electric vehicles with the relevant federal or provincial authorities, ensuring proper documentation and compliance under the program.
