The government has started transferring subsidy amounts to beneficiaries under the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme, which covers electric bikes and rickshaws. The disbursement includes applicants under both the Self Finance Scheme and the Bank Finance Scheme, approved by the Prime Minister for electric two- and three-wheelers nationwide.
The PAVE Scheme is designed to promote clean, affordable, and sustainable mobility, reduce dependence on fossil fuels, and encourage local electric vehicle manufacturing. A total subsidy of Rs. 100.36 billion will be provided over five years until 2030 for electric bikes, rickshaws, loaders, cars, buses, and trucks.
The Engineering Development Board (EDB), under the Ministry of Industries and Production, is implementing Phase-I of the Prime Minister’s Electric Vehicle Adoption Scheme as part of the New Energy Vehicles Policy (NEVP) 2025–2030. Phase-I provides financial and capital subsidy support for 41,000 electric vehicles, including 40,000 bikes and 1,000 rickshaws and loaders. Phase-II will extend facilitation to 78,170 additional vehicles with a total subsidy of Rs. 8.95 billion in 2025–26.
Under the Self Finance Scheme, applicants pay the full price of their electric bike to the manufacturer and receive a subsidy of up to Rs. 80,000 directly into their bank accounts by the State Bank of Pakistan after verification. The Bank Lease Scheme provides electric vehicles on easy installments at subsidized rates through participating banks.
Following the formal launch of Phase-I, the subsidy disbursement process has entered its operational stage, with payments already transferred to the first batch of verified applicants. Further disbursements will continue progressively according to the approved verification framework.
The scheme is being implemented in coordination with the EDB, Ministry of Industries and Production, State Bank of Pakistan, Punjab Information Technology Board, NADRA, participating banks, and approved OEMs. Eligibility for subsidies requires mandatory registration of electric vehicles with federal or provincial authorities.
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