The federal government has launched a “Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders” to promote green transportation across Pakistan. The initiative, backed by the State Bank of Pakistan (SBP), aims to make electric vehicles more affordable for individuals, delivery riders, and fleet operators.
Scheme Size
| Phase | Electric Bikes | E-Rickshaws/Loaders | Special Allocations |
| Phase 1 | 40,000 | 1,000 | 25% bikes for women, 10% for business users |
| Phase 2 | 76,000 | 2,171 | 30% of rickshaws/loaders for fleet operators |
| Total | 116,000 | 3,170 | Reserved quotas included |
At least 25% of e-bikes will be reserved for women, 10% for delivery/courier riders, and up to 30% of rickshaws/loaders will go to fleet operators.
Eligibility
- Open to all Pakistani citizens, including residents of Gilgit-Baltistan and Azad Jammu & Kashmir.
- Age limits:
- E-bikes: 18–65 years
- Rickshaws/loaders: 21–65 years
- E-bikes: 18–65 years
- Fleet operators can apply for rickshaw/loader financing (criteria set by the steering committee).
Financing Details
| Vehicle Type | Loan Cap | Capital Subsidy | Debt-to-Equity Ratio | Loan Tenure |
| E-bike | Rs. 200,000 | Rs. 50,000 | 80:20 | Up to 2 years |
| E-rickshaw/Loader | Rs. 880,000 | Rs. 200,000 | 80:20 | Up to 3 years |
Subsidy is adjusted against down payment.- If the subsidy fully covers the 20% equity portion, the borrower won’t need to pay extra upfront.
- Financing available via conventional and Islamic banks.
Loan Markup & Installments
- Loan installments will include only principal + insurance.
- The government will pay the entire markup subsidy, so end-user rate = 0%.
- Banks will charge 6-month KIBOR + 2.75%, covered by the federal government.
- Digital processing with minimal human interaction; banks will integrate with a centralized portal managed by the Ministry of Industries & Production and the Engineering Development Board (EDB).
Other Features
- Only EDB-approved vehicle models will be financed.
- Mandatory documents: valid CNIC and digital undertaking for driving license.
- The government will cover background check costs (NADRA, mobile database).
- Insurance: First-year premium paid upfront; rates will be centrally negotiated.
- No hidden charges: No loan processing fees, early settlement charges, or repossession fees.
Credit Loss Guarantee (CLG)
- Borrowers must bear registration and insurance costs.
- A 20% portfolio guarantee will be provided by the government on a first-loss basis.
- Claims are eligible after 180 days of default.
- Mandatory documents: CNIC and digital driving license undertaking.
The Electric Bikes and Rickshaw/Loaders Scheme is a giant move towards cheap and sustainable transportation in Pakistan. Through the provision of subsidies, interest-free loans, and non-discriminatory requirements of eligibility, the government expects to increase the uptake of environmentally-friendly vehicles as well as benefiting women, delivery riders, and fleet operators.
Read: Latest Govt News
