Government Approves Electric Bikes on 2-Year Installments to Promote EV Usage

Islamabad — In a major push to promote electric vehicles (EVs) over petrol and diesel-powered transport, the federal government has decided to provide 116,000 electric bikes on easy two-year installment plans.

According to media reports, the installment and subsidy scheme for electric bikes has entered its final preparation stages. Prime Minister Shehbaz Sharif is expected to officially announce the new EV policy scheme on Independence Day.

The scheme is being developed in collaboration with the State Bank of Pakistan and the Banking Association. Under this plan, a subsidy of PKR 50,000 will be provided on each electric bike and electric rickshaw. The eligibility age for applicants will range between 18 and 65 years.

Each electric bike is estimated to cost up to PKR 250,000, with buyers required to pay the remaining amount, over PKR 200,000 after the subsidy, in installments.

Sources reveal that 17 companies have successfully obtained licenses to manufacture electric bikes under the policy, which aims for 30% of all vehicles on the road to be electric by 2030.

Read more: Govt to Give Free E-Bikes to THESE Students!

To support the success of the EV policy, the government plans to allocate PKR 10 billion in subsidies over the next five years. The breakdown of subsidies includes PKR 900 million for the current fiscal year, PKR 1.9 billion in 2027, over PKR 2.4 billion in 2028, more than PKR 2.6 billion in 2029, and approximately PKR 2.3 billion in 2030.

The policy sets an ambitious target to produce over 2.2 million electric vehicles by 2030 and aims for 90% electric vehicle adoption by 2040. The goal of achieving a 100% zero-emission vehicle fleet is projected for 2060.

Promoting electric vehicles is expected to significantly reduce Pakistan’s import bill on fossil fuels and help combat environmental pollution through cleaner, greener transportation options.