ISLAMABAD (Kashmir English): The Cabinet’s Economic Coordination Committee (ECC) on Tuesday authorized a summary presented by the Ministry of Industries and Production for the launch of a subsidy E-bike scheme to incentivize the use of electric rickshaws and bikes.
The ECC meeting, which was presided over by Federal Minister for Finance Senator Muhammad Aurangzeb, approved the summary.
A budgetary allocation of Rs. 9 billion has already been provided for FY 2025-26 to fund this scheme. The scheme further proposes the distribution of free electric bikes to outstanding students of government colleges.
According to the sanctioned plan, 116,000 electric rickshaws and 3,170 electric loaders/rickshaws will be brought to market in two phases. Out of these, in the first phase, scheduled to be launched by the Prime Minister in the coming short while, 40,000 electric rickshaws and 1,000 electric loaders/rickshaws will be phased in.
1. Financing Options
Both conventional and Islamic financing options will be available.
- Maximum loan size:
- Electric bike: Rs. 200,000/-
- Electric rikshaw/loader: Rs. 880,000/-
- Allowed markup rate: 6 months KIBOR + 2.75%
- Tenor: Up to 2 years for bikes, 3 years for rikshaws/loaders
2. Government Support and Equity Contribution
- Portfolio Guarantee: Government to provide a 20% portfolio guarantee on a first-loss basis.
- Debt-to-equity ratio: 80:20
- Govt. share in equity:
- Rs. 50,000/- for electric bikes
- Rs. 200,000/- for rikshaw/loaders
- Markup Subsidy: The government will bear the entire markup cost, making the borrower’s markup zero.
3. Eligibility Criteria for E-bike scheme
- Nationality: All citizens of Pakistan, including Gilgit-Baltistan and AJK.
- Age Limit:
- Electric bike: 18 to 65 years
- Electric rikshaw/loader: 21 to 65 years
- Vehicle Limit:
One electric bike or rikshaw/loader per citizen.
Fleet operators’ allocation for rikshaws is decided by the Steering Committee.
4. Provincial and Special Quotas
- Quotas distributed province-wise as per the 2023 census.
- Special Allocations:
- Balochistan: 10% reserved quota (reduced from Sindh & Punjab).
- Women: Minimum 25% quota for electric bikes.
- Commercial bike users: Maximum 10% quota (courier/delivery services).
- Fleet operators for rikshaws: Maximum 30% of the leftover quota.
5. Application and Selection Process
- Applications will be invited through an advertisement.
- Electronic balloting is used if applications exceed the allocated quota.
- Scheme to be implemented via an end-to-end digital platform for:
- Application submission
- Balloting
- Progress tracking
6. Manufacturer and Product Shortlisting
- Eligibility: Only EDB-shortlisted manufacturers/assemblers can participate.
- Shortlisting based on:
Technical capacity
Financial strength
After-sales service capability - Product Shortlisting:
Electric bikes and rikshaws/loaders are selected based on quality, performance, and safety standards.
Successful candidates can choose from the shortlisted options to promote competition.
7. Transparency and Audits
- Third-party audit of the scheme for transparency.
- Regular audit by the Auditor General of Pakistan.
- Third-party validation for:
- Manufacturer/assembler shortlisting
- Product quality checks (procedure to be developed by the Steering Committee)
8. Branding and Identification
All electric bikes and rickshaws supplied under the scheme will carry official branding approved by the Steering Committee.
