The federal government has approved the initial phase of a Rs100 billion plan to roll out subsidised electric bikes and rickshaws across the country, aiming to shift one-third of vehicle usage to clean energy by 2030. The scheme is designed to promote environment-friendly transport options while redistributing financial responsibility through levies imposed on owners of conventional fuel-based vehicles. The Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb, sanctioned the plan during a virtual meeting, enabling the distribution of 116,000 electric bikes and 3,170 electric rickshaws in two phases.
Under the approved initiative, individuals between the ages of 18 and 65 will be eligible for interest-free loans and equity support to purchase electric bikes or rickshaws. The program allocates Rs200,000 in support for bikes—split between Rs50,000 in equity and Rs150,000 in interest-free loans—and up to Rs380,000 for electric three-wheelers, with Rs200,000 as equity and Rs180,000 offered as a loan. The initial rollout will consist of 40,000 electric bikes and 1,000 electric rickshaws, with future phases expected to expand the distribution. A 25% quota is reserved for women participants. Vehicles will be distributed based on provincial population share, while Balochistan has been granted an additional 10% quota, adjusted against allocations for Punjab and Sindh.
The ECC also announced that 219 high-performing students in federal colleges across four disciplines will receive electric bikes free of charge. The maximum bike cost allowed under the scheme is Rs250,000. A budget of Rs9 billion has already been allocated for the ongoing fiscal year to finance this plan.
To support the financial burden of the green vehicle scheme, the government has introduced a levy ranging from 1% to 3% on the registration of conventional vehicles, expected to generate Rs122 billion. From this amount, Rs100 billion will be allocated to subsidising the cost of electric vehicles.
During the same session, ECC approved a Rs30 billion subsidy for addressing outstanding dues under the home remittance initiative, launched in 1985 as an incentive for overseas Pakistanis. Despite claims of Rs136 billion in remittance expenses by the central bank last fiscal year, the finance ministry had previously cleared Rs78 billion, leaving Rs58 billion still pending. Key financial institutions such as United Bank Limited, MCB Bank, and Bank AL Habib are among those with the highest outstanding claims.
Prime Minister Shehbaz Sharif has directed the finance ministry to revive and rationalise the Pakistan Remittance Initiative and instructed that stakeholder consultations and a comprehensive assessment be completed by the end of August. ECC has tasked the Finance Division to collaborate with the State Bank and present a plan addressing the financial and policy implications by mid-September.
Additionally, ECC has approved in principle a Rs2 billion bailout grant for Quaid-e-Azam University, conditional on the presentation of a detailed plan outlining how the institution intends to achieve long-term financial self-sustainability, in collaboration with the Higher Education Commission.
