The federal government has officially begun distributing subsidies under the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme, enabling thousands of approved applicants to receive electric bikes and rickshaws on easy installments. In the first phase, subsidies are being transferred to over 41,000 beneficiaries, including 40,000 electric bikes and 1,000 electric rickshaws and loaders.
According to reporting by The Express Tribune, approximately Rs9 billion has been earmarked for subsidy payments during the current fiscal year.
The initiative aims to promote affordable electric mobility, reduce fuel imports, and encourage environmentally friendly transportation across Pakistan.
What Is the PAVE Scheme?
The Pakistan Accelerated Vehicle Electrification (PAVE) Scheme is a federal program designed to support the transition toward electric vehicles (EVs).
The scheme focuses on:
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Providing subsidies for electric bikes and rickshaws
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Offering vehicles on bank-based easy installment plans
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Reducing fuel dependency
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Supporting clean energy adoption
The Engineering Development Board (EDB) is overseeing implementation.
Subsidy Details Under Phase 1
Under the first phase:
| Vehicle Type | Number of Recipients | Subsidy Support |
|---|---|---|
| Electric Bikes | 40,000 | Up to Rs80,000 per unit |
| Electric Rickshaws & Loaders | 1,000 | Subsidy included under scheme guidelines |
| Total Beneficiaries | 41,000 | Rs9 billion allocated |
Subsidy amounts are being transferred directly to approved applicants’ bank accounts through the State Bank of Pakistan (SBP).
Only applicants who completed the official process under the PAVE framework are eligible.
Easy Installment Financing Through Banks
In addition to subsidies, electric vehicles are being provided through bank leasing facilities.
Key features include:
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Structured installment plans
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Direct bank processing
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Transparent payment structure
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Regulated financing channels
This approach allows students, youth, women, and small business operators to access electric vehicles without heavy upfront costs.
Phase 2 Expansion Plan
Officials have indicated that the second phase of the scheme will expand subsidy coverage to more than 78,000 additional electric vehicles.
The long-term objective includes:
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Expanding EV access nationwide
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Increasing subsidy allocations in future years
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Promoting electric mobility infrastructure
The government has projected that total EV subsidies could exceed Rs100 billion by 2030, depending on adoption rates and fiscal planning.
Why the PAVE Scheme Matters for Pakistan
The EV subsidy program addresses several national priorities:
1. Fuel Import Reduction
Electric mobility reduces reliance on imported petroleum products.
2. Environmental Impact
Lower emissions contribute to improved urban air quality.
3. Youth & Women Empowerment
Affordable transport options support education, employment, and entrepreneurship.
4. Economic Support
Bank-financed installment models make vehicle ownership more accessible.
Who Is Eligible for Subsidy?
Only individuals who:
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Applied through the official PAVE process
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Received approval confirmation
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Completed required banking procedures
are eligible for subsidy transfers.
Subsidy payments are processed after verification.
How the Subsidy Transfer Works
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Application approval under PAVE
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Bank financing confirmation
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Subsidy amount verification
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Direct transfer to applicant’s account
This ensures transparency and reduces manual intervention.
Featured Summary
What is the PAVE Scheme?
A federal EV subsidy program providing electric bikes and rickshaws on easy installments.
How much subsidy is offered?
Up to Rs80,000 per electric bike, with Rs9 billion allocated in the current fiscal year.
How many beneficiaries in Phase 1?
41,000 recipients, including 40,000 electric bikes and 1,000 rickshaws/loaders.
Official Source
Details of subsidy disbursement and expansion plans were reported by The Express Tribune (Pakistan).
Final Analysis
The rollout of EV subsidies under the PAVE Scheme marks a structured step toward expanding electric mobility in Pakistan. By combining direct subsidy transfers with regulated installment financing, the program aims to make electric transportation more accessible while supporting environmental and economic objectives.
Applicants are encouraged to rely only on official communication channels for updates regarding eligibility and future phases.
