By Pakistan has officially accelerated its transition toward green mobility with the launch of the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme. Spearheaded by the Engineering Development Board (EDB), the initiative aims to put thousands of electric vehicles (EVs) on the road while significantly reducing the country’s fuel import bill.
CEO Hamad Ali Mansoor confirmed that under the PAVE Scheme, the government is providing electric bikes, rickshaws, and loaders with substantial financial support and convenient instalment plans.
Key Financial Incentives Under PAVE Scheme
The most attractive feature of the program is the electric bike subsidy of up to PKR 80,000 per applicant. The subsidy is directly transferred into approved bank accounts through the State Bank of Pakistan (SBP), ensuring transparency and efficient disbursement.
PAVE Scheme Financial Summary:
- Electric Bike Subsidy: Up to PKR 80,000
- Current Year Budget: Approximately PKR 9 Billion
- Long-Term Budget (by 2030): Over PKR 100 Billion
- Disbursement Channel: State Bank of Pakistan (Direct Transfer)
Additionally, the government has partnered with commercial banks to offer leasing and easy instalment plans, making electric mobility more affordable for the general public.
Implementation Phases and Targets
The government is rolling out the PAVE Scheme in structured phases to manage demand effectively.
Phase 1 (Currently Ongoing)
- Total Target: 41,000 Vehicles
- Breakdown: 40,000 electric bikes and 1,000 electric rickshaws/loaders
Phase 2 (Upcoming)
- Target: 78,000+ Vehicles
- Included Vehicles: Electric bikes, rickshaws, and loaders
With Phase 1 in full swing, authorities are already preparing for an expanded Phase 2 due to increasing public interest.
Who Can Benefit?
Eligibility criteria remain strict, and only individuals who follow the official PAVE application process can claim the subsidy. The scheme primarily targets:
- Students
- Youth
- Women
- Low-income individuals
- Small business operators (rickshaw and loader users)
The initiative aims to provide affordable transportation options while simultaneously supporting employment and small-scale entrepreneurship.
Strategic Impact on Pakistan’s Economy and Environment
The PAVE Scheme electric bike subsidy Pakistan initiative serves multiple national objectives:
- Reduce Fuel Import Bill: Electric vehicles lower reliance on imported petroleum products.
- Promote Local EV Industry: Encourages domestic manufacturing and assembly.
- Combat Air Pollution: EV adoption reduces harmful emissions in major cities.
- Encourage Sustainable Transport: Promotes alternative energy solutions.
With a long-term allocation exceeding PKR 100 billion by 2030, the government is signaling a serious commitment to electrification.
Final Thoughts
The launch of the PAVE Scheme marks a major milestone in Pakistan’s green transportation journey. By offering up to PKR 80,000 in subsidies and easy financing options, the government is making electric bikes and rickshaws more accessible than ever.
If successfully implemented, the initiative could significantly transform Pakistan’s urban mobility landscape, reduce environmental pollution, and strengthen the country’s emerging electric vehicle industry.
