Government-Backed Green Transport Initiative Now Available
The State Bank of Pakistan has unveiled a groundbreaking interest-free financing program for electric vehicles, marking a significant step toward sustainable transportation and reduced carbon emissions across the nation.
Program Overview and Financial Benefits
The federally-supported scheme will facilitate financing for approximately 116,000 electric bikes and 3,170 electric rickshaws or loaders during fiscal year 2026. Participants will access zero-markup loans, with the government absorbing all interest costs while providing subsidies of Rs50,000 per electric bike and Rs200,000 per rickshaw or loader.
Applicants must contribute a minimum 20 percent down payment, with repayment periods spanning two years for motorcycles and three years for three-wheelers. Financing options are available through both conventional and Islamic banking institutions.
Inclusive Allocation Strategy
The initiative prioritizes diverse beneficiaries through designated quotas: 25 percent of electric bikes reserved for women buyers, 10 percent allocated to delivery and courier personnel, and 30 percent of three-wheelers designated for commercial fleet operators.
Implementation occurs across two phases—initially distributing 40,000 bikes and 1,000 three-wheelers, followed by remaining allocations in the subsequent stage.
Eligibility Requirements
Pakistani citizens, including residents of Gilgit-Baltistan and Azad Jammu & Kashmir, qualify for participation. Electric bike applicants must be aged 18-65 years, while rickshaw or loader candidates require a minimum age of 21. Maximum financing caps stand at Rs200,000 for two-wheelers and Rs880,000 for three-wheelers.
The program operates through an integrated digital lending system, connecting participating banks with a centralized portal managed by the Ministry of Industries and Production alongside the Engineering Development Board, ensuring transparent processing and accountability throughout the application cycle.
