ISLAMABAD: Pakistan’s plan to promote electric bikes has hit a major hurdle, as commercial banks rejected most applications under the scheme, forcing the government to revise its policy.
According to Beyond Time News, banks approved only 4,075 out of 44,689 applications—just 9%—showing weak interest in financing subsidised electric bikes.
Low Approvals Threaten Annual Target
The government aimed to distribute over 116,000 electric bikes this fiscal year. However, the slow pace of approvals has put that target at risk.
So far, only 5,409 electric bikes and rickshaws have been approved. This number represents just 4.5% of the annual goal.
The scheme is part of the Pakistan Accelerated Vehicle Electrification (PAVE) programme. It offers subsidies to make electric vehicles more affordable.
Petrol Levy Funds the Scheme
The government funds the programme through a Rs2.5 per litre levy on petrol and diesel. This levy will double from July under an agreement with the International Monetary Fund.
Officials allocated Rs9 billion for the current fiscal year. The goal is to promote electric bikes, rickshaws, and loaders.
Self-Financing Option Shows Better Results
Applicants had two choices. They could apply through banks with subsidised financing or buy the bike themselves and claim reimbursement.
The self-finance option performed much better. Out of 1,339 applicants, 1,334 received bikes. Around 77% also got subsidies directly in their accounts.
In contrast, banks processed only 22% of applications and approved less than half of those.
Government Reduces Banks’ Role
Due to poor performance, the government has decided to limit the role of banks in the next phase.
Applicants will soon be able to get bikes directly from suppliers. They will pay the price minus the subsidy, avoiding large upfront costs.
Read more:Sindh Govt Announces Major Relief for Bike Taxi Riders
Special Scheme for Government Employees
The Economic Coordination Committee (ECC) also approved a new plan for government employees in BS-16 and below.
Under this plan, buyers will pay Rs10,000 upfront for a bike or Rs100,000 for a rickshaw. The rest will be paid in instalments. Manufacturers will not charge interest, and subsidies will be released within five working days.
Focus on Faster Adoption
The government plans to distribute 100,000 additional electric bikes within three months. These bikes will use existing CKD kits already available in Pakistan.
Manufacturers will receive a subsidy of Rs80,000 per bike after delivery and registration.
Officials expect this move to save millions in fuel costs. It could reduce petrol consumption by 8.6 million litres in just three months.
Challenges Remain
Authorities also discussed issues with third-party verification. Delays in hiring verification firms have affected public trust.
Despite these challenges, the government aims to speed up adoption. It hopes the revised policy will improve access and reduce dependence on fuel.
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