Pakistan launches scheme for electric vehicles

The federal government has launched a nationwide initiative to promote electric vehicle (EV) adoption as part of efforts to reduce fuel imports and support sustainable transport.

The Pakistan Accelerated Vehicle Electrification (PAVE) scheme seeks to encourage the transition to clean and affordable mobility while supporting domestic EV manufacturing. Under the programme, subsidies worth Rs100.36 billion will be provided over five years, up to 2030, for electric bikes, rickshaws, loaders, cars, buses and trucks.

The scheme is being implemented by the Engineering Development Board (EDB), an attached department of the Ministry of Industries and Production, under the New Energy Vehicles Policy (NEVP) 2025-30.

Phase-I of the programme provides financial and capital subsidies for 41,000 electric vehicles, including 40,000 electric bikes and 1,000 electric rickshaws and loaders. According to officials, Phase-II will extend support to an additional 78,170 vehicles during 2025-26, with an allocated subsidy of Rs8.95bn.

Under the self-finance option, applicants pay the full cost of an electric bike upfront and receive a reimbursement of up to Rs80,000 after verification by the State Bank of Pakistan. Under the bank lease scheme, electric two- and three-wheelers are being offered on subsidised instalments.