The government has begun transferring subsidy amounts to successful applicants under the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme for electric bikes, rickshaws, and loaders, marking the start of its operational implementation phase.
The subsidy transfer covers both the Self Finance Scheme and the Bank Finance (Lease) Scheme approved by the Prime Minister of Pakistan to promote electric mobility across the country.
Under the PAVE Scheme, 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, with the objective of accelerating the shift toward clean, affordable, and sustainable transportation while reducing reliance on fossil fuels.
The Engineering Development Board (EDB), operating under the Ministry of Industries and Production, is implementing Phase-I of the Prime Minister’s Electric Vehicle Adoption Scheme under the New Energy Vehicles Policy (NEVP) 2025–2030. Phase-I includes financial and capital subsidy support for 41,000 electric vehicles nationwide, comprising 40,000 electric bikes and 1,000 electric rickshaws and loaders.
According to official details, Phase-II of the scheme will facilitate an additional 78,170 electric vehicles with a total subsidy allocation of Rs. 8.95 billion during 2025–26.
In the Self Finance Scheme, applicants pay the full price of the electric bike to the manufacturer, after which a subsidy of up to Rs. 80,000 is reimbursed directly into the applicant’s bank account by the State Bank of Pakistan following verification. Under the Bank Lease Scheme, electric two- and three-wheelers are being provided on easy installments at subsidized rates.
Officials confirmed that capital subsidy disbursements have already been transferred to the first batch of verified applicants under both schemes, formally initiating subsidy payouts under Phase-I. Further disbursements will continue in phases in line with the approved verification framework.
The scheme is being implemented through 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 to ensure digital verification, transparency, and timely subsidy release.
Authorities reiterated that only electric vehicles registered with federal or provincial registration authorities are eligible for subsidy claims, adding that unregistered vehicles will not qualify for the incentive. Successful applicants have expressed gratitude to the government for facilitating affordable and cleaner mobility options.
