Govt rolls out cost-sharing scheme for 116k e-bikes, 3k e-rickshaws

September 29, 2025 (MLN): The Federal Government has rolled out a Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders aimed at promoting energy efficiency and accelerating the transition to green technologies in Pakistan’s automotive sector.

According to a circular issued by the State Bank of Pakistan (SBP) to the Presidents and CEOs of all banks today, the scheme will finance approximately 116,000 e-bikes and 3,170 e-rickshaws/loaders during FY26.

The program will be executed in two phases:

• Phase-I: 40,000 e-bikes and 1,000 e-rickshaws/loaders

• Phase-II: 76,000 e-bikes and 2,171 e-rickshaws/loaders

Quota allocation has also been defined, reserving a minimum of 25% of e-bikes for females, while up to 10% will go to business users such as couriers and delivery riders. Similarly, up to 30% of e-rickshaws/loaders are earmarked for fleet operators.

Key features include:

• Financing limit: PKR 200,000 for two-wheelers, PKR 880,000 for three-wheelers

• Capital subsidy: Up to PKR 50,000 for bikes, PKR 200,000 for rickshaws/loaders

• Debt-to-equity ratio: 80:20 (with borrower contribution waived if fully covered by subsidy)

• Loan tenor: 2 years for e-bikes, 3 years for rickshaws/loaders

• End-user rate: 0% (markup fully subsidized by the government)

• EMIs: Only principal + insurance component

• Loan processing charges: Nil

• Credit loss guarantee: 20% portfolio guarantee on first loss basis

Banks will provide both conventional and Islamic financing under the program, with integration into a centralized digital platform hosted by the Ministry of Industries & Production (MoI&P) and the Engineering Development Board (EDB).

Original Equipment Manufacturers (OEMs) shortlisted by EDB will be responsible for timely delivery and after-sales service.

The government will also bear the cost of NADRA Verisys and PMD checks to facilitate smooth processing.

The initiative is positioned as a major step toward reducing reliance on fossil fuels, cutting emissions, and supporting affordable mobility solutions, while also ensuring broader participation through female quotas and business-user allocations.

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