Islamabad: In a significant move to promote electric vehicles (EVs) and bikes over traditional petrol and diesel options, the federal government has decided to offer 116,000 electric bikes on a two-year installment plan.

Sources indicate that the installment and subsidy scheme for electric bikes is in its final stages of preparation. Prime Minister Shehbaz Sharif is expected to officially announce the new EV policy scheme on Independence Day.

The scheme, being developed by the State Bank of Pakistan and the Pakistan Banks’ Association, will provide a subsidy of PKR 50,000 per electric bike and rickshaw. Eligibility for the scheme will be open to individuals between the ages of 18 and 65 years.

The estimated price for a single electric bike is projected to be around PKR 250,000. With the PKR 50,000 subsidy, the remaining amount, over PKR 200,000, will be payable in installments.

According to sources, 17 companies have successfully obtained licenses to manufacture electric bikes in Pakistan. Under the new policy, the government has set a target for 30% of all vehicles to be electric by 2030.

To ensure the success of the EV policy, a total subsidy of PKR 100 billion will be provided over five years. For the current fiscal year, PKR 9 billion has been allocated. This will be followed by PKR 19 billion for 2027, over PKR 24 billion for 2028, and over PKR 26 billion for 2029. In 2030, approximately PKR 23 billion will be allocated for subsidies.

The government aims to produce 2.213 million electric vehicles by 2030, with an ambitious target of 90% electric vehicles by 2040. The long-term goal is to achieve a 100% zero-emission vehicle fleet by 2060.

The promotion of the Electric Vehicle Policy is expected to reduce the cost of imported fuel, thereby strengthening the national economy. Additionally, these eco-friendly electric vehicles will contribute significantly to combating environmental pollution.