ISLAMABAD: The federal government has launched a comprehensive initiative to promote electric vehicle (EV) mobility across Pakistan, aiming to accelerate the transition to clean, affordable and sustainable transportation while reducing dependence on fossil fuels.
The Pakistan Accelerated Vehicle Electrification (PAVE) scheme seeks to support domestic electric vehicle manufacturing and advance the objectives of the New Energy Vehicles Policy (NEVP) 2025–30.
Under the programme, the government will provide Rs100.36 billion in subsidies over five years, up to 2030, for a wide range of electric vehicles, including 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. Phase-I of the Prime Minister’s Electric Vehicle Adoption Scheme is currently underway.
Phase-I Implementation
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.
Building on this initial rollout, Phase-II will extend support to an additional 78,170 electric vehicles during 2025–26, with a total subsidy allocation of Rs8.95 billion.
Subsidy Mechanism
Under the self-finance scheme, applicants pay the full price of an electric bike to the manufacturer, after which a subsidy of up to Rs80,000 is reimbursed directly to the applicant’s bank account by the State Bank of Pakistan, following verification.
Under the bank lease scheme, two-wheeler and three-wheeler electric vehicles will be provided on easy instalments at subsidised rates through participating banks.
Following the formal launch of Phase-I, the capital subsidy disbursement process has begun, marking the scheme’s transition into the operational stage. Subsidies have already been released to the first group of verified beneficiaries under both financing models.
Institutional Coordination
The programme is being implemented through close coordination among the Engineering Development Board, Ministry of Industries and Production, State Bank of Pakistan, Punjab Information Technology Board, Nadra, participating banks and approved original equipment manufacturers. Authorities said the digital framework ensures transparency, robust verification and timely disbursement of subsidies.
