Punjab is preparing to roll out Pakistan’s first electric taxi service, with the provincial government finalizing the operational and financing framework to support the project. Chief Minister Maryam Nawaz has positioned the initiative as a cornerstone of modernizing urban transport and cutting emissions while addressing rising fuel costs that continue to burden commuters. The launch, which begins with 1,100 electric taxis in Lahore, represents one of the largest investments in sustainable public transport in the province, backed by a Rs. 2 billion allocation.
The financing structure has been designed to ensure accessibility for drivers, balancing affordability with long-term sustainability. Banks will extend loans of up to Rs. 6.5 million for purchasing electric vehicles, while the provincial government will cover the interest costs, removing a key barrier to adoption. In addition, a subsidy of Rs. 585,000 will be provided toward the down payment of vehicles priced between Rs. 4 million and Rs. 10 million. This hybrid model allows drivers to secure vehicles with minimal upfront contributions, with the remainder supported by bank financing and government facilitation, effectively lowering entry costs for new operators in the market.
The fleet will feature Chinese-manufactured electric vehicles, selected for their cost efficiency, durability, and compatibility with local conditions. To complement the rollout, 18 charging stations have already been established across Lahore, with further expansion of charging infrastructure planned across Punjab to meet future demand. This investment ensures that the initiative is supported by the necessary infrastructure, addressing a frequent challenge faced in the adoption of electric mobility solutions.
The electric taxi service is expected to reduce transportation costs for drivers and passengers, given that EVs carry significantly lower running costs compared to conventional fuel-powered vehicles. Equally, the environmental benefits include substantial reductions in carbon emissions, aligning with global efforts toward greener, more sustainable cities. Officials also describe the project as an important step in positioning Punjab’s transport system in line with international clean mobility standards. The provincial government has indicated that the service may expand beyond Lahore in later phases, potentially inspiring similar programs in other regions of Pakistan and creating a foundation for broader EV adoption in the public transport sector.
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