ISLAMABAD: Pakistan’s federal cabinet body on Tuesday approved a subsidy scheme to distribute electric bikes and electric rickshaws to promote electric vehicles in the country as an effort to combat environmental challenges.
The Economic Coordination Committee (ECC) of the Cabinet meeting, chaired virtually by Federal Finance Minister Muhammad Aurangzeb, was attended by ministers and senior officials from the power, petroleum, and food security ministries.
“The meeting deliberated on several key economic matters, including the rollout of a new energy vehicle policy, extension of grants-in-aid for Quaid-i-Azam University, and approval of a technical supplementary grant related to the Telegraphic Transfer Charges Incentive Scheme,” an official statement said.
The Committee considered and approved a summary submitted by the Ministry of Industries and Production regarding the implementation of a subsidy scheme to promote the adoption of electric bikes and rickshaws/loaders by citizens of Pakistan.
It said a budgetary provision of PKR 9 billion has already been made for FY 2025-26 to finance this initiative.
The scheme also includes the provision of free electric bikes to top-performing students of government colleges.
As per the approved plan, 116,000 electric bikes and 3,170 electric rickshaws/loaders will be introduced in two phases.
In the initial phase, expected to be launched by the Prime Minister soon, 40,000 electric bikes and 1,000 electric rickshaws and loaders will be rolled out.
Pakistan’s EV policy
The Pakistan government in June 2025 officially launched the National Electric Vehicle (NEV) Policy 2025-30.
Under the policy, it will be ensured that 30% of all new vehicles sold in Pakistan by 2030 will be electric.
The transition is projected to save 2.07 billion litres of fuel annually, amounting to nearly $1 billion in foreign exchange savings.
Additionally, the policy is expected to reduce carbon emissions by 4.5 million tons and cut healthcare-related costs by $405 million per year.
The policy also includes the introduction of battery swapping systems, vehicle-to-grid (V2G) schemes, and mandatory integration of EV charging points in new building codes to facilitate wider adoption in urban areas.
Reimbursement scheme grant
In a separate decision, the ECC approved a PKR 30 billion technical supplementary grant (TSG) to clear pending reimbursement claims under the Telegraphic Transfer Charges Incentive Scheme from FY2024–25.
These claims amount to PKR 58.26 billion in total. The ECC directed the Finance Division to coordinate with the State Bank of Pakistan (SBP) to finalise payment modalities and also ordered a detailed assessment of the remittance scheme.
The review will include financial analysis, opportunity cost evaluation, and stakeholder input, with final recommendations due by mid-September.
QAU bailout package
Additionally, the ECC approved in principle a bailout grant of PKR 2 billion for Quaid-i-Azam University, contingent upon the preparation and presentation of a comprehensive financial self-sustainability plan.
The university, in collaboration with the Higher Education Commission, is required to submit a clear roadmap outlining the strategy to achieve long-term financial stability and reduce dependency on future bailout packages.
