The government has approved a major subsidy plan under the New Energy Vehicles policy 2025–30. The initiative aims to promote electric vehicles across Pakistan.
The Economic Coordination Committee approved a Rs. 9 billion package for FY2025–26. The plan is part of the Pakistan Accelerated Vehicle Electrification program.
Under the scheme, electric bikes, rickshaws, and loaders will be distributed. The process will follow a first-come, first-served system.
The total target for this phase is over 119,000 vehicles. This includes around 116,000 electric bikes and over 3,000 rickshaws and loaders.
A fixed subsidy of Rs. 80,000 will be given per electric bike. The subsidy will be paid directly to manufacturers after verification.
Officials said an additional fast-track plan for 100,000 bikes is also expected. This could be completed within three months.
The program is expected to save millions of litres of petrol. Estimated savings could reach $222 million over five years.
Top-performing students will also receive free electric bikes. Around 600 bikes will be distributed to high achievers in exams.
The subsidy system has been improved for faster processing. Buyers will now pay the price after subsidy deduction.
The State Bank of Pakistan will handle subsidy payments to companies. This ensures transparency and smooth execution.
Officials believe this policy will boost EV adoption in Pakistan. It will also reduce fuel costs and support environmental goals.