The federal government, in its bid to accelerate the adoption of green technology, has unveiled the ‘Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders’ on Monday.
According to details provided by the State Bank of Pakistan (SBP), the scheme will cover the financing of around 116,000 e-bikes and 3,170 e-rickshaws/loaders during FY 2025-26.
Distribution will take place in two phases.
“In the first phase, 40,000 e-bikes and 1,000 e-rickshaw/loaders will be distributed, while the remaining 76000 e-bikes and 2,171 e-rickshaws/loaders will be distributed in the second phase,” said SBP.
A special quota system has been designed, under which at least 25% of the total e-bikes will be reserved for women, while up to 10% will be available for individuals engaged in businesses, including courier and delivery services.
In the case of rickshaws and loaders, 30% of the quota has been allocated for fleet operators.
The scheme will be open to all Pakistani citizens, having a valid CNIC, including those from Gilgit-Baltistan and Azad Jammu & Kashmir, subject to age restrictions.
“In case of rickshaws/loaders, fleet operators will also be eligible to apply in addition to common citizens,” said SBP. Whereas, eligibility criteria for fleet operators will be determined by the steering committee.
For e-bikes, the age range has been set at 18 to 65 years, while for rickshaws/loaders, the age range has been set at 21 to 65 years.
To make financing affordable, the government has offered capital subsidies of up to Rs50,000 per e-bike and Rs200,000 per rickshaw/loader. Loans will be extended under an 80:20 debt-to-equity ratio, where the equity portion will encompass both capital subsidy and the borrower’s share.
As a general principle, first, a fixed capital subsidy will be applied, and any remaining amount will then be paid by the borrower.
“For the avoidance of doubt, if the equity portion of 20% is fully covered by capital subsidy, then the borrower will not pay any amount,” said SBP.
Furthermore, the loans will be interest-free for end users, with the government absorbing the full markup cost. The repayment period will extend to a maximum of two years for e-bikes and three years for rickshaws/loaders. Borrowers will only need to pay the principal amount and insurance in their monthly instalments.
As per SBP, the scheme will be facilitated through a digital lending platform, minimising human interaction. “Banks will integrate with a digital platform for sharing information, etc
Vehicle models and vendors will be shortlisted by the Engineering Development Board (EDB), with manufacturers “shall be responsible for timely delivery of vehicles to borrowers and for regular after-sales service.”