Pakistan has launched its National Electric Vehicle (NEV) Policy 2025-30, which includes a substantial plan to provide billions of rupees in subsidies for electric bikes and rickshaws.

Here’s the plan and how it benefits buyers:

The Plan:

• Significant Subsidy Allocation: An initial subsidy of Rs 9 billion has been allocated for the fiscal year 2025-26. The government projects a cumulative subsidy of over Rs 100 billion for the five-year program.
• Targeted Vehicles: This initial subsidy aims to facilitate 116,053 electric bikes and 3,171 electric rickshaws.
• Quota for Women: Importantly, 25% of the subsidy is reserved for women to promote safe, affordable, and eco-friendly mobility.
• Digital Platform for Transparency: A fully digital platform has been introduced for transparent online application, verification, and disbursement of subsidies.
• Subsidized Financing: The policy also aims to reduce financing costs, with proposals for financing at a low Kibor rate (Karachi Interbank Offered Rate) where the government covers a significant portion of the financial cost. This could result in monthly installments lower than projected fuel savings.
• Focus on Local Manufacturing: Incentives are being provided to domestic producers to encourage local manufacturing, with over 90% of parts for two- and three-wheelers already manufactured locally. Locally produced goods are expected to be 30-40% cheaper than imported alternatives.
• Infrastructure Development: The policy outlines the installation of 40 new EV charging stations on motorways and includes provisions for battery swapping systems and mandatory integration of EV charging points in new building codes.

Benefits for Buyers:

• Reduced Upfront Cost: The direct subsidy will significantly lower the initial purchase price of electric bikes, making them more affordable and accessible to a wider range of people, particularly middle-class families.
• Lower Running Costs: Electric bikes are considerably cheaper to operate than petrol bikes.
  • Fuel Savings: Charging an electric bike costs a fraction of what would be spent on petrol. Users can save thousands of rupees annually, with some estimates suggesting the cost of charging for 100km is as low as PKR 50-70, compared to PKR 4,500-5,500 for a petrol bike for similar usage.
  • Quick Payback Period: The initial investment in an electric bike is expected to be recovered within approximately one year and ten months due to significant fuel savings.
• Reduced Maintenance: Electric bikes have fewer moving parts than traditional petrol bikes, leading to lower maintenance costs (no oil changes, spark plug replacements, or engine overhauls).
• Environmentally Friendly: Buyers contribute to a cleaner environment by choosing a zero-emission mode of transport, helping to reduce urban air pollution and carbon emissions.
• Financial Accessibility: The combination of subsidies and potentially Shariah-compliant installment plans with low or no interest makes electric bike ownership more financially feasible for individuals who might not be able to afford a large upfront payment.
• Improved Mobility for Women: The reserved quota ensures that women have increased access to safe, affordable, and eco-friendly transportation.

In essence, the Pakistani government’s plan aims to make electric bikes a highly attractive and practical alternative to traditional petrol bikes, offering substantial financial benefits to buyers while also promoting environmental sustainability and industrial growth.