Islamabad: The federal government has launched a comprehensive scheme to promote electric vehicle (EV) mobility across Pakistan, aiming to accelerate the transition to clean, affordable and sustainable transportation.
The initiative, titled the Pakistan Accelerated Vehicle Electrification (PAVE) scheme, seeks to reduce reliance on fossil fuels while supporting the growth of domestic electric vehicle manufacturing. The programme is being implemented under the New Energy Vehicles Policy (NEVP) 2025–30.
Under the scheme, subsidies amounting to Rs100.36 billion will be provided over five years, up to 2030, covering a wide range of electric vehicles, including bikes, rickshaws, loaders, cars, buses and trucks. The Engineering Development Board (EDB), an attached department of the Ministry of Industries and Production, is overseeing the implementation.
Phase-I of the Prime Minister’s Electric Vehicle Adoption Scheme is currently underway and offers financial and capital subsidy support for 41,000 electric vehicles nationwide. This includes 40,000 electric bikes and 1,000 electric rickshaws and loaders.
Building on this rollout, Phase-II will extend incentives to an additional 78,170 electric vehicles, with a total subsidy allocation of Rs8.95 billion during 2025–26.
Under the self-finance scheme, applicants pay the full cost of an electric bike upfront to the manufacturer, after which a subsidy of up to Rs80,000 is reimbursed directly to the applicant’s bank account by the State Bank of Pakistan, following verification.
Under the bank lease scheme, two-wheeler and three-wheeler electric vehicles will be provided on easy instalments at subsidised rates, making EV ownership more accessible.
Following the formal launch of Phase-I, the capital subsidy disbursement process has entered the operational stage. Subsidies have already been transferred to the first batch of verified beneficiaries under both financing models.
The scheme is being implemented through close coordination among the EDB, Ministry of Industries and Production, State Bank of Pakistan, Punjab Information Technology Board, NADRA, participating banks, and approved original equipment manufacturers, ensuring digital verification, transparency and timely disbursement of subsidies.
Story by Kalbe Ali
