The federal government has launched a cost sharing scheme for electric bikes and rickshaws, aiming to promote clean energy, affordable transport, and green mobility in Pakistan. The initiative is designed to cut reliance on fossil fuels, reduce emissions, and encourage the adoption of sustainable technologies in the automotive sector.
According to a circular issued by the State Bank of Pakistan (SBP) to bank heads, the program will finance[1] around 116,000 e-bikes and 3,170 e-rickshaws/loaders during FY26. The rollout will take place in two phases: Phase I will cover 40,000 e-bikes and 1,000 e-rickshaws/loaders, while Phase II will add 76,000 e-bikes and 2,171 e-rickshaws/loaders.
The scheme also introduces specific quotas to ensure wider participation. At least 25% of e-bikes will be reserved for women, while up to 10% will go to business users, including couriers and delivery riders. Similarly, 30% of e-rickshaws/loaders are allocated for fleet operators.
Key Financing Features
The cost sharing scheme for electric bikes and rickshaws comes with several attractive features:
- Financing limit: Rs200,000 for e-bikes and Rs880,000 for rickshaws/loaders
- Capital subsidy: Up to Rs50,000 for bikes and Rs200,000 for rickshaws/loaders
- Debt-to-equity ratio: 80:20 (borrower’s contribution waived if fully subsidized)
- Loan tenor: 2 years for e-bikes, 3 years for rickshaws/loaders
- End-user markup: 0% (fully subsidized by the government)
- EMIs: Principal + insurance only
- Loan processing charges: Nil
- Credit loss guarantee: 20% portfolio guarantee on a first-loss basis
Banks will offer both conventional and Islamic financing under the scheme, integrated into a centralized digital platform managed by the Ministry of Industries & Production (MoI&P) and the Engineering Development Board (EDB). Shortlisted Original Equipment Manufacturers (OEMs) will be responsible for timely delivery and after-sales services.
The government will also cover the cost of NADRA verification and PMD checks to streamline loan approvals.