The federal government has formally begun the implementation of the Prime Minister’s Special Electric Vehicle Scheme, with the release of funds for subsidies on electric bikes, rickshaws, and loaders aimed at promoting affordable and environmentally friendly transportation.

Under the scheme, the government has started disbursing subsidies to approved applicants, marking the first practical step toward large-scale adoption of electric vehicles.

A subsidy of around Rs9 billion will be provided during the current financial year, with plans to allocate more than Rs100 billion over the next five years until 2030.

Phase one targets 41,000 electric vehicles

According to the Engineering Development Board, subsidies in the first phase are being granted for 41,000 electric vehicles. This includes 40,000 electric bikes and 1,000 electric rickshaws and loaders.

Under the scheme, the public will be able to purchase electric vehicles at subsidized rates. For example, an electric bike worth around Rs250,000 will receive a government subsidy of up to Rs80,000.

Bank lease and cash schemes

The subsidy is being provided through both bank lease and cash schemes to make electric vehicles accessible to a wider population. Electric bikes and rickshaws are being offered on easy installments, easing the financial burden on buyers.

In phase one, the subsidy is being transferred directly to applicants’ accounts through the State Bank of Pakistan. The Engineering Development Board confirmed that Rs3.5 billion has already been paid to commercial banks under the scheme.

In the second phase, the government plans to provide subsidies for more than 78,000 additional electric vehicles. Officials say this expansion will significantly increase the number of electric bikes, rickshaws, and loaders on Pakistani roads.

Long-term vision for green transport

The scheme is part of a broader government mission to promote affordable, sustainable, and environment-friendly transport. By reducing reliance on fuel-powered vehicles, the initiative aims to cut emissions, lower transport costs, and support Pakistan’s transition to clean energy mobility.

According to official projections, cumulative subsidies under the Electric Vehicle Scheme will exceed Rs100 billion over the next five years.

Authorities believe the initiative will also stimulate local manufacturing and create new opportunities in Pakistan’s automotive and energy sectors.