By SKM
January 15, 2026
ISLAMABAD: The Government of Pakistan has officially started the transfer of subsidy amounts to successful applicants under the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme for electric bikes, rickshaws and loaders, marking a major step toward clean and affordable mobility across the country.
The subsidy disbursement has commenced for both Self Finance and Bank Lease schemes under Phase-I of the Prime Minister’s Electric Vehicle Adoption Initiative, approved by the Prime Minister. Verified applicants have already begun receiving subsidy payments, signaling the scheme’s transition from planning to full-scale implementation.
Under the Self Finance Scheme, applicants pay the full cost of an electric bike upfront, after which a subsidy of up to Rs. 80,000 is reimbursed directly into their bank accounts by the State Bank of Pakistan following verification. Meanwhile, under the Bank Lease Scheme, electric two- and three-wheelers are being provided on easy installments at subsidized rates, making electric mobility accessible to a wider segment of the population.
The scheme aims to accelerate Pakistan’s shift toward clean, sustainable and affordable transportation, reduce reliance on imported fossil fuels, and promote local electric vehicle manufacturing. Over a five-year period ending in 2030, the government plans to provide Rs. 100.36 billion in subsidies for electric bikes, rickshaws, loaders, cars, buses and trucks.
The Engineering Development Board (EDB), under the Ministry of Industries and Production, is implementing Phase-I of the scheme under the New Energy Vehicles Policy (NEVP) 2025–2030. Phase-I covers 41,000 electric vehicles nationwide, including 40,000 electric bikes and 1,000 electric rickshaws and loaders. Building on this progress, Phase-II will support an additional 78,170 electric vehicles with a subsidy allocation of Rs. 8.95 billion during 2025–26.
The program is being implemented through close coordination among the EDB, Ministry of Industries and Production, State Bank of Pakistan, Punjab Information Technology Board (PITB), NADRA, participating banks, and approved Original Equipment Manufacturers (OEMs). This integrated digital framework ensures transparency, verification, and timely subsidy payments.
Beneficiaries have welcomed the initiative, expressing appreciation for the government’s efforts to provide affordable, environment-friendly transportation options.
Authorities have reiterated that only duly registered electric vehicles with federal or provincial registration authorities are eligible for subsidy claims, and unregistered vehicles will not qualify for reimbursement. Ends
