SBP announces interest-free scheme for e-bikes, rickshaws; here's who can apply

The State Bank of Pakistan (SBP) has introduced an interest-free financing scheme for the purchase of electric bikes, rickshaws, and loaders to promote energy efficiency and encourage a shift towards environmentally friendly transport.

According to the central bank, the federal government will provide subsidies of up to Rs50,000 for two-wheelers and Rs200,000 for three-wheelers under the programme. Financing will be extended by banks through both conventional and Islamic modes, capped at Rs200,000 for e-bikes and Rs880,000 for rickshaws or loaders.

The repayment period will be two years for e-bikes and three years for rickshaws or loaders.

The initiative, titled the Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders, is designed to cover around 116,000 e-bikes and 3,170 e-rickshaws/loaders during FY2025-26 in two phases.

The first phase will see the distribution of 40,000 e-bikes and 1,000 e-rickshaws/loaders, with the remaining units to follow in the second phase.

To ensure inclusivity, 25% of e-bikes are reserved for women, 10% for those engaged in courier and delivery services, and 30% of rickshaws/loaders for fleet operators. Eligibility for fleet operators will be determined by a steering committee.

Citizens across Pakistan, including those in Gilgit-Baltistan and Azad Jammu and Kashmir, are eligible to apply, provided they make a minimum 20% equity contribution.

The government has committed to covering the full mark-up subsidy, fixing the end-user rate at 0%. Manufacturers shortlisted by the Engineering Development Board will be responsible for timely delivery and after-sales service.

The scheme follows the Economic Coordination Committee’s approval of a Rs100 billion plan last month to expand the use of electric vehicles. The initiative is being financed through a levy of 1–3% imposed on owners of conventional fuel-based cars, expected to generate Rs122 billion.

The government aims to ensure that at least 30% of vehicles sold annually in Pakistan run on clean energy by 2030.

In addition, the government has approved the distribution of 219 free electric bikes for high-achieving students in federal colleges.

The Sindh government has also launched a separate Pink Scooters Programme to provide free e-scooters to women, aimed at improving mobility and access to education and employment.