In a major push toward clean transportation, the federal government has launched a cost-sharing scheme to make electric bikes and rickshaws more affordable for the public.
In a major push toward clean transportation, the federal government has launched a cost-sharing scheme to make electric bikes and rickshaws more affordable for the public.
The initiative, backed by the State Bank of Pakistan, aims to promote energy efficiency and reduce reliance on fossil fuels in the country’s transport sector.
Under the new scheme, more than 116,000 electric bikes and over 3,000 electric rickshaws/loaders will be financed during the fiscal year 2025-26, with the rollout happening in two phases.
The first phase includes 40,000 e-bikes and 1,000 e-rickshaws, while the remaining units will be distributed in the second phase.
Under the program, at least 25% of the e-bikes will be reserved for women, while 10% will go to individuals using them for business purposes, such as courier or delivery services.
Additionally, 30% of the e-rickshaws/loaders will be set aside for fleet operators.
The applications are expected to open soon through participating banks and the program’s digital platform. All Pakistani citizens aged 18 to 65 are eligible to apply for e-bike financing, while applicants for rickshaws must be at least 21 years old. Fleet operators may also apply under specific criteria to be defined by the program’s steering committee.
The scheme offers interest-free loans, with financing available through both conventional and Islamic banking channels. Borrowers will pay only the principal and insurance, with no loan processing or early settlement charges.
The government will cover the full markup cost, bringing the end-user rate to 0%.
Maximum loan amounts are set at PKR 200,000 for e-bikes and PKR 880,000 for e-rickshaws/loaders, with a 20% down payment required.
Up to PKR 50,000 in subsidy is available for each e-bike, and PKR 200,000 for each rickshaw or loader.
Loan terms extend up to two years for e-bikes and three years for rickshaws, and the application process will be handled digitally to minimize paperwork and speed up approvals.
Banks will connect directly with a centralized online platform for processing and verification, while the government will cover costs for identity verification and credit checks via NADRA and other agencies.
The vehicle models will be selected by the Engineering Development Board, and manufacturers will be responsible for timely delivery and after-sales service.
The scheme includes a 20% first-loss guarantee to banks, encouraging financial institutions to participate while managing credit risk.
Officials say the move will not only support green transportation but also create jobs and reduce urban air pollution.
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