Breaking News: Govt to Give Rs. 100 Billion Subsidy on Electric Vehicles Till 2030

100 Billion Subsidy on Electric Vehicles Till 2030

The Pakistani government has launched a major initiative to promote electric vehicles (EVs) under the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme. With a total subsidy of Rs. 100.36 billion planned until 2030, the program aims to accelerate the adoption of electric bikes, rickshaws, loaders, cars, buses, and trucks nationwide. The scheme provides financial relief under both the Self Finance and Bank Lease schemes, encouraging sustainable mobility while supporting local EV manufacturing. Verified applicants have already started receiving subsidies through official channels.

Also Read: Electric Scooter Scheme

Key FeatureDetails
Program NamePakistan Accelerated Vehicle Electrification (PAVE) Scheme
Total SubsidyRs. 100.36 billion until 2030
Vehicle TypesElectric bikes, rickshaws, loaders, cars, buses, trucks
Phase-I Coverage41,000 vehicles (40,000 bikes + 1,000 rickshaws/loaders)
Phase-II Coverage78,170 vehicles in 2025–26
Self Finance SchemeUp to Rs. 80,000 reimbursed per bike
Bank Lease SchemeEasy installment plans via participating banks
Implementing BodyEngineering Development Board (EDB), Ministry of Industries & Production

What Is the PAVE Scheme – Short Overview

The PAVE Scheme is designed to reduce Pakistan’s dependence on fossil fuels while promoting clean and affordable transportation. The government provides financial support, capital subsidies, and easy financing options for electric vehicles.

  • Objective: Accelerate EV adoption
  • Focus: Bikes, rickshaws, loaders, and larger electric vehicles
  • Implementation: Coordinated by EDB, State Bank of Pakistan, banks, NADRA, and OEMs
  • Subsidy Period: Up to 2030

Information is confirmed by official government sources and verified top Google listings.

Phase-I Subsidy Details – Short Explanation

Phase-I focuses on 41,000 electric vehicles nationwide.

  • Electric bikes: 40,000 units covered under Self Finance and Bank Lease Schemes
  • Electric rickshaws/loaders: 1,000 units
  • Capital subsidy: Direct transfer to verified applicants’ accounts
  • Self Finance Scheme: Pay full price first, reimbursement up to Rs. 80,000

This phase is already operational, and early beneficiaries have received payments.

Phase-II Plans Short Explanation

Phase-II will expand support to 78,170 additional electric vehicles during 2025–26.

  • Total subsidy: Rs. 8.95 billion
  • Vehicles covered: Bikes, rickshaws, and loaders
  • Implementation: Continued through EDB and partner banks

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This phase aims to increase EV penetration and support sustainable energy goals.

How to Avail Subsidy Step-by-Step Process

Follow these steps to claim the government subsidy:

  1. Register your electric vehicle with federal or provincial authorities
  2. Apply under Self Finance or Bank Lease Scheme through approved OEM or bank
  3. Complete verification by participating banks and EDB
  4. For Self Finance, pay full vehicle price to the manufacturer
  5. Bank transfers the subsidy directly into the applicant’s account
  6. Maintain records of registration, payment receipts, and subsidy confirmation

Self Finance Scheme – Short Explanation

The Self Finance Scheme allows applicants to pay the full price upfront and then receive a subsidy.

  • Up to Rs. 80,000 per electric bike
  • Direct transfer to applicant’s account by State Bank of Pakistan
  • Ensures transparency and avoids middlemen
  • Requires proper verification before disbursement

Bank Lease Scheme Short Explanation

The Bank Lease Scheme offers subsidized installment plans for electric two- and three-wheelers.

  • Available through participating banks nationwide
  • Low-cost financing to make EVs affordable
  • Capital subsidy reduces total repayment burden
  • Supports buyers who cannot pay full upfront cost

Helpline & Contact Information

For assistance regarding the PAVE Scheme and subsidies:

  • EDB Helpline: 051-9205194
  • State Bank of Pakistan (Subsidy Queries): 021-111-727-111
  • Official Website: www.pave.gov.pk
  • Bank Contacts: Check participating banks for Bank Lease Scheme

Applicants should always verify information through official channels to avoid scams.

Conclusion

The Rs. 100 billion PAVE Scheme marks a historic step toward sustainable mobility in Pakistan. By providing direct subsidies, easy financing, and capital support, the government is promoting electric vehicles nationwide, reducing fossil fuel dependence, and supporting domestic manufacturing. Early beneficiaries have started receiving funds, and the program will continue until 2030, making electric mobility accessible to millions of Pakistanis.

FAQs

Who is eligible for the PAVE subsidy?

Applicants purchasing electric bikes, rickshaws, loaders, cars, or buses under approved schemes and registered with authorities.

How is the subsidy disbursed under the Self Finance Scheme?

Pay full vehicle price first; subsidy up to Rs. 80,000 is reimbursed directly into the applicant’s account by the State Bank of Pakistan.

Can I buy an electric vehicle on installments?

Yes, through the Bank Lease Scheme via participating banks at subsidized rates.

What is the total subsidy amount and duration of the PAVE Scheme?

The government will provide Rs. 100.36 billion until 2030 across multiple EV categories.

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