Government Approves Zero-Interest Loans For e-Bikes and Rickshaws In Pakistan

electric bike in pakistan

Pakistan’s government has received criticism for proposing a fuel subsidy scheme ahead of the upcoming elections. In response, the government has approved a new scheme to incentivize the use of e-bikes and rickshaws. The subsidised scheme is estimated to cost Rs7.5 billion and will be implemented under the Prime Minister’s Youth Programme. 

The financing facility for the scheme was approved by the Economic Coordination Committee of the Cabinet, headed by Finance Minister Ishaq Dar. The scheme aims to make e-bikes and rickshaws affordable by providing potential users with an incentive structure. The State Bank of Pakistan (SBP), the Bank of Punjab, and the National Rural Support Programme will play key roles in the initiative. 

The government has already reduced customs duty and sales tax for the import of EV-specific parts under the Auto Industry Development & Export Policy 2021-26. The target for EV penetration in Pakistan is set at 50% by 2026. 

In addition to the electric bike and rickshaw scheme, the ECC also approved the declaration of Customs Station Angoor Adda as an authorised export land route to Afghanistan and through Afghanistan to Central Asian Republics. The meeting also approved an increase in GoP guarantee related to USD-denominated loans of Pakistan International Airlines Corporation Limited by enhancing the existing guarantee limit. 

Read More: Karachi is getting electric taxi service

Furthermore, the ECC approved the sale of over 20,000 tonnes of sugar at a controlled rate of Rs95 per kg in Punjab, following a jump in retail prices due to export permission. The Pakistan Sugar Mills Association decision to provide 20,000 tonnes of sugar at Rs95 per kg during Ramazan till Eidul Fitr to the general public through the government of Punjab was endorsed. The ECC also directed to make arrangements with other provincial PSMAs on a similar pattern for the provision of sugar in other provinces. 

The ECC also approved about Rs675.5m worth of four supplementary grants for different ministries. 

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