The federal government has initiated the transfer of subsidy amounts to successful applicants under the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme, covering electric bikes, rickshaws, and loaders across the country.

The subsidy payments are being released for beneficiaries under both the Self Finance Scheme and the Bank Finance Scheme, following approval from the Prime Minister. The initiative aims to promote clean, affordable, and sustainable transportation, while reducing dependence on fossil fuels and supporting local electric vehicle manufacturing.

Under the PAVE framework, a total subsidy of Rs100.36 billion will be provided over a five-year period up to 2030, covering a wide range of electric vehicles, including two-wheelers, three-wheelers, cars, buses, and trucks.

Phase-I of the scheme is being implemented by the Engineering Development Board, operating under the Ministry of Industries and Production, as part of the New Energy Vehicles Policy (NEVP) 2025–2030.

During Phase-I, financial and capital subsidies are being extended for 41,000 electric vehicles nationwide, including 40,000 electric bikes and 1,000 electric rickshaws and loaders. Phase-II is expected to facilitate an additional 78,170 electric vehicles, with a planned subsidy allocation of Rs8.95bn during FY26.

Under the Self Finance Scheme, applicants pay the full cost of the electric bike upfront, after which a subsidy of up to Rs80,000 is reimbursed directly into the applicant’s bank account by the State Bank of Pakistan, following verification and scrutiny.

Meanwhile, under the Bank Lease Scheme, electric two- and three-wheelers are being offered on easy installments at subsidized rates through participating banks. With the formal rollout of Phase-I completed, subsidy disbursements have entered the operational phase, and payments to verified applicants are now underway, with further transfers to continue gradually.

The scheme is being executed through coordinated efforts involving the EDB, Ministry of Industries and Production, SBP, NADRA, Punjab Information Technology Board (PITB), participating banks, and approved original equipment manufacturers (OEMs). Eligibility for subsidy claims is subject to mandatory vehicle registration with relevant federal or provincial authorities.