By The Government of Pakistan has officially started transferring subsidy amounts to approved applicants under the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme, marking a major milestone in the country’s transition toward clean and sustainable mobility. The initial phase of subsidy disbursement covers beneficiaries of both the Self Finance Scheme and the Bank Finance Scheme, as approved by the Prime Minister of Pakistan, for electric bikes, rickshaws, and loaders nationwide.
This development signals that the PAVE Scheme has moved from policy planning to full-scale implementation, offering tangible financial relief to citizens adopting electric mobility solutions.
What Is the PAVE Scheme and Why It Matters?
The PAVE Scheme has been introduced to reduce Pakistan’s dependence on fossil fuels, cut transport-related emissions, and promote local electric vehicle (EV) manufacturing. Under this initiative, the government has committed a total subsidy of Rs. 100.36 billion 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) under the Ministry of Industries and Production, as part of the New Energy Vehicles Policy (NEVP) 2025–2030.
Phase-I: 41,000 Electric Vehicles Nationwide
Phase-I of the Prime Minister’s Electric Vehicle Adoption Scheme focuses on rapid deployment and financial facilitation. It includes subsidy and capital support for 41,000 electric vehicles, comprising:
- 40,000 electric bikes
- 1,000 electric rickshaws and loaders
Following the formal launch, the capital subsidy mechanism has become operational, and the first batch of verified applicants has already received subsidy payments. Further disbursements will continue in phases under the approved verification framework.
Phase-II Expansion Plan (2025–26)
Looking ahead, Phase-II of the PAVE Scheme will extend facilitation to an additional 78,170 electric vehicles, backed by a Rs. 8.95 billion subsidy allocation during 2025–26. This expansion highlights the government’s long-term commitment to mass EV adoption across Pakistan.
How the Subsidy Works: Two Financing Options?
Self Finance Scheme
Under this option, applicants pay the full price of the electric bike to the manufacturer. After verification, a subsidy of up to Rs. 80,000 is reimbursed directly into the applicant’s bank account by the State Bank of Pakistan.
Bank Lease Scheme
Electric two- and three-wheelers are offered on easy monthly installments at subsidized rates through participating banks, making EV ownership more accessible for middle- and lower-income households.
Multi-Agency Coordination and Eligibility
The scheme is being implemented through close coordination among key institutions, including the EDB, Ministry of Industries and Production, State Bank of Pakistan, Punjab Information Technology Board, NADRA, participating banks, and approved OEMs.
To qualify for subsidy claims, mandatory registration of electric vehicles with federal or provincial authorities is required, ensuring transparency and proper tracking.
The start of subsidy disbursement under the PAVE Scheme represents a significant leap toward affordable electric mobility in Pakistan. With billions committed, structured financing options, and strong institutional coordination, the initiative is set to transform the two- and three-wheeler transport segment while supporting environmental sustainability and local industry growth.
