ISLAMABAD: The federal government has launched a comprehensive scheme to promote electric vehicle (EV) mobility across Pakistan, aiming to accelerate the country’s transition towards clean, affordable and sustainable transportation while reducing reliance on fossil fuels.
The initiative, titled the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme, is designed to support the adoption of electric mobility and encourage the growth of domestic electric vehicle manufacturing under the New Energy Vehicles Policy (NEVP) 2025–30.
Under the scheme, the government will provide a total subsidy of Rs100.36 billion over five years, up to 2030, covering a wide range of electric vehicles, including electric bikes, rickshaws, loaders, cars, buses and trucks. The programme is being implemented by the Engineering Development Board (EDB), an attached department of the Ministry of Industries and Production.
Currently, Phase-I of the Prime Minister’s Electric Vehicle Adoption Scheme is underway. This phase provides financial and capital subsidy support for 41,000 electric vehicles nationwide, comprising 40,000 electric bikes and 1,000 electric rickshaws and loaders. Officials said Phase-I marks a critical step in promoting low-cost electric mobility, particularly for urban commuters and small businesses.
Under the scheme, a total subsidy of Rs100.36 billion will be provided over five years. https://t.co/A1JPM3btNU
— Dawn Business (@dawn_business) January 22, 2026
Building on the initial rollout, Phase-II of the scheme will extend facilitation to an additional 78,170 electric vehicles during 2025–26, involving a total subsidy of Rs8.95 billion. The phased approach aims to gradually expand EV adoption while ensuring effective implementation and market readiness.
The scheme offers two financing models to cater to different income segments. Under the self-finance scheme, successful applicants pay the full cost of an electric bike upfront to the manufacturer. After verification, a subsidy of up to Rs80,000 is reimbursed directly into the applicant’s bank account by the State Bank of Pakistan.
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Under the bank lease scheme, two-wheeler and three-wheeler electric vehicles will be provided on easy instalments at subsidised rates, making EV ownership more accessible for low- and middle-income users.
Following the formal launch of Phase-I, the capital subsidy disbursement process has begun, moving the scheme into its operational phase. Authorities confirmed that subsidies have already been transferred to the first batch of verified beneficiaries under both financing options.
The government said the scheme is being implemented through close coordination among the EDB, Ministry of Industries and Production, State Bank, Punjab Information Technology Board, Nadra, participating banks and approved original equipment manufacturers. This integrated framework is intended to ensure digital verification, transparency and timely release of subsidies.
Officials believe the PAVE scheme will play a key role in cutting fuel imports, lowering emissions, creating green jobs and positioning Pakistan on a sustainable transport pathway over the coming decade.
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