ISLAMABAD: The government has rejected a proposal by commercial banks seeking an additional 5% interest on financing for electric two and three-wheelers, maintaining the current 11% rate. Banks argued the increase was necessary to cover insurance and operational costs.
In response, the Steering Committee on the Electric Vehicle (EV) Policy, chaired by Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan, announced plans to engage banks in discussions to ensure fair financing terms.
The federal government has earmarked Rs9 billion in subsidies in the current budget and aims to allocate a total of Rs100 billion over five years to promote electric two and three-wheelers. Under the policy, vehicles should not exceed a price of Rs200,000, with Rs60,000 offered as a subsidy and the balance available through bank loans.
Experts suggested EV financing rates should remain within Karachi Inter-bank Offered Rate (KIBOR) plus 1% to 2%. Committee members also emphasized that lithium batteries must be used and battery-swapping options be restricted, in line with China’s policy, to deter theft. Proposed range standards include 60 km for two-wheelers and 180 km for three-wheelers on a single charge.
The committee reviewed the first phase of the subsidy scheme, assessing battery performance in Pakistan’s climate. SAPM Haroon Akhtar highlighted that the Ministry of Industries is consulting provinces for cohesive policy implementation and stressed the EV policy’s alignment with environmental goals, including reductions in greenhouse gas emissions and potential for carbon credits.
He reaffirmed the government’s commitment to building a green transport ecosystem and transitioning towards sustainable, low-emission mobility solutions.
Story by Zafar Bhutta
