Punjab has taken another decisive step toward launching Pakistan’s first electric taxi service, as the provincial government finalized the financing structure of its ambitious e-taxi program. Approved earlier this year, the project now moves closer to implementation with clear details on subsidies, vehicle procurement, and operational planning. Officials stated that the scheme is designed not only to introduce electric mobility but also to provide financial support mechanisms that make ownership feasible for drivers while reducing the province’s reliance on conventional fuel-based transport.
According to the working paper shared with stakeholders, around 1,100 electric taxis will be introduced in Lahore during the first phase of the program. Chief Minister Maryam Nawaz has already approved the financing model, which is built around subsidized loans and government-backed incentives. Under this arrangement, banks will extend loans of up to Rs. 6.5 million for the purchase of electric vehicles. The provincial government will absorb the interest cost, effectively allowing buyers to pay back only the principal amount of the loan. This approach is aimed at ensuring affordability while encouraging greater adoption of electric vehicles in the province’s public transport ecosystem.
Further details of the financing structure highlight that buyers will be required to make a subsidized down payment, supported by direct government contributions. For vehicles priced between Rs. 4 million and Rs. 10 million, the Punjab government will pay Rs. 585,000 on behalf of buyers toward the down payment, while the remainder will be financed through banks. Officials have earmarked Rs. 2 billion for the initiative, signaling the scale of provincial commitment to the project. By reducing upfront costs and eliminating interest burdens, the scheme seeks to attract drivers and operators who may otherwise find the investment unaffordable. This model also ensures that the financial risk remains manageable for individuals entering the program.
In terms of vehicles, the project will initially rely on 1,100 Chinese-manufactured electric taxis, which have been selected for their cost efficiency and suitability for urban commuting. Alongside the vehicle procurement, infrastructure development is already underway to support the e-taxi rollout. Officials confirmed that 18 charging stations have been established across Lahore, strategically located to ensure coverage for the first phase of the program. Plans are in place to gradually expand the charging network as the fleet grows, ensuring that drivers have access to reliable charging facilities and passengers can benefit from uninterrupted service.
The Punjab e-taxi service is expected to bring several benefits to the province’s urban transport landscape. By transitioning to electric vehicles, officials anticipate a reduction in fuel costs, improved affordability for passengers, and a significant decrease in harmful emissions. The program is also being framed as part of the government’s broader strategy to modernize public mobility, integrate sustainable transport solutions, and prepare the province for the future demands of urbanization. With financing, infrastructure, and operational planning now aligned, the initiative represents a practical step toward achieving cleaner, more cost-effective, and technologically advanced urban transport in Punjab.
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