ECC greenlights Rs9bn EV subsidy, Rs30bn remittance payout

August 05, 2025 (MLN): The Economic Coordination Committee (ECC) of the Cabinet on Monday approved a technical supplementary grant of Rs30 billion to partially settle Rs58.26 billion in outstanding claims from the previous fiscal year under the Telegraphic Transfer Charges Incentive Scheme, alongside the rollout of a Rs9bn nationwide electric vehicle subsidy programme.

The meeting was chaired virtually by Finance Minister Senator Muhammad Aurangzeb.

 The session was attended by Federal Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Petroleum Ali Pervaiz Malik, Minister for National Food Security and Research Rana Tanveer Hussain, along with senior officials from relevant ministries, divisions, and departments.

The ECC approved a summary from the Ministry of Industries and Production for implementing a subsidy scheme aimed at accelerating the adoption of electric bikes and rickshaws/loaders in Pakistan.

A budgetary provision of Rs9 billion has already been earmarked for FY2025-26 to fund the initiative.

As per the plan, 116,000 electric bikes and 3,170 electric rickshaws/loaders will be distributed in two phases.

The initial phase, expected to be launched shortly by the Prime Minister, will include 40,000 e-bikes and 1,000 e-rickshaws/loaders. The scheme also includes the distribution of free electric bikes to top-performing students of government colleges.

In another major decision, the ECC approved a technical supplementary grant of Rs30bn, requested by the Finance Division, to partially settle Rs58.26bn in outstanding claims from the previous fiscal year under the Telegraphic Transfer Charges Incentive Scheme.

The Committee directed the Finance Division to coordinate with the State Bank of Pakistan (SBP) on payment modalities for the grant.

The ECC also instructed the Finance Division to conduct a comprehensive review of the Pakistan Remittance Initiative, in collaboration with the SBP, assessing its pros and cons, financial modalities, and opportunity costs.

The initial analysis is to be completed by the end of August, with final recommendations, incorporating stakeholder feedback, to be presented by mid-September.

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