The government of Pakistan has accelerated its Pakistan Accelerated Vehicle Electrification (PAVE) scheme, aimed at promoting the use of electric vehicles nationwide.
Under the programme, eligible individuals can receive subsidies when purchasing electric bikes, rickshaws, and loaders.
The Engineering Development Board (EDB) is overseeing the initiative, with its CEO, Hamad Ali Mansoor, stating that the first phase of the programme is already in progress.
In a post on X, the department has confirmed that, as per the National Vehicle Policy 2025-30, 40,000 electric motorcycles and 1,000 three-wheeler rickshaws have been granted subsidies in the first phase.
Moreover, the government is providing a subsidy of Rs80,000 on electric bikes, and Rs400,000 on the three-wheeler rikshaws and loaders. There is also a special quota for women, delivery workers and the flat operators.
How are subsidies being distributed?
According to Mansoor, the government plans to provide approximately Rs9 billion in subsidies during the current fiscal year, with a target of exceeding Rs100 billion by 2030.
This aligns with Pakistan’s goal of having 30% electric vehicles on the roads by 2030.
In the first phase, 41,000 beneficiaries are receiving subsidies, including 40,000 electric bikes, 1,000 electric rickshaws, and 1,000 loaders.
The amounts are being directly transferred to approved bank accounts through the State Bank of Pakistan. The second phase will cover over 78,000 additional electric vehicles.
Who can benefit from scheme?
The chief highlighted that only those who purchase vehicles through the approved PAVE procedures are eligible for subsidies.
The programme is particularly aimed at students, youth, and women, offering affordable installment plans to make electric bikes more accessible.
The entire registration and selection process is fully digital. Applicants must register on the PYO portal and provide accurate details to participate in the scheme, ensuring transparency and efficiency.
Wider goals
The government says the PAVE scheme has multiple benefits. It is expected to:
- Reduce the country’s dependence on imported fuel
- Promote environmentally friendly transport
- Support local industry
- Foster a sustainable and eco-friendly transportation system
Mansoor emphasised that the initiative combines subsidy support with easy payment options, making electric vehicles more affordable for the public.
How many vehicles will be covered?
In total, the programme plans to distribute 116,000 electric vehicles nationwide, including bikes, rickshaws, and loaders, over multiple phases.
Subsidy transfers for the first phase are already underway, with the second phase expected to begin soon.
The PAVE scheme reflects a wider government push to modernise transport in Pakistan while supporting clean energy solutions.
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