ISLAMABAD: The Federal Government has launched a Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders to encourage energy efficiency and support green technologies in Pakistan’s transport sector. The initiative reflects a long-term vision to reduce fossil fuel dependency while expanding access to affordable and sustainable mobility.
Financing 119,000 Vehicles in FY26
According to the State Bank of Pakistan’s (SBP) circular sent to bank presidents and CEOs, the scheme will finance 116,000 e-bikes and 3,170 e-rickshaws/loaders during fiscal year 2026. The program will be executed in two distinct phases. Phase-I includes 40,000 e-bikes and 1,000 e-rickshaws/loaders, while Phase-II will support 76,000 e-bikes and 2,171 e-rickshaws/loaders.
Inclusive Quotas for Women and Businesses
To ensure equal participation, the scheme reserves 25% of e-bikes for women. Moreover, up to 10% of allocations target couriers and delivery riders, while 30% of e-rickshaws/loaders will be provided to fleet operators. This inclusivity highlights the program’s commitment to empowering women and supporting small businesses.
Key Financing Features
The scheme offers several attractive financing options. Borrowers can access PKR 200,000 for e-bikes and PKR 880,000 for rickshaws/loaders. A capital subsidy of PKR 50,000 for e-bikes and PKR 200,000 for rickshaws/loaders is also available. Financing will follow an 80:20 debt-to-equity ratio, though borrower contribution is waived if subsidies fully cover it.
The loan tenor is set at two years for e-bikes and three years for rickshaws/loaders, with zero percent markup. End users will only pay the principal plus insurance, while no loan processing charges will apply. Additionally, a 20% credit loss guarantee on a first-loss basis will reduce bank risks.
Digital Integration and After-Sales Service
Banks will provide both conventional and Islamic financing under a centralized digital platform managed by the Ministry of Industries & Production (MoI&P) and the Engineering Development Board (EDB). Only shortlisted Original Equipment Manufacturers (OEMs) will supply vehicles and ensure timely delivery and after-sales service.
The government will also cover the cost of NADRA Verisys and PMD checks, enabling smooth loan approvals.
Driving Green Mobility
This scheme represents a major step toward cutting emissions, promoting electric transport, and creating affordable green mobility solutions. With strong female participation, business-user allocations, and government-backed subsidies, Pakistan is set to accelerate its shift toward clean transportation.
About The Truth International
The Truth International (TTI), based in Islamabad, is a private organization, doing research work/projects and running its print and digital media wing _ a website, a fortnightly magazine, a YouTube Channel, and social media pages on all platforms. Stay up to date by staying connected to The Truth International.
