The federal government is set to introduce a new five-year electric vehicle (EV) policy on August 14, aimed at boosting the use of electric bikes and rickshaws in Pakistan. Backed by the International Monetary Fund (IMF), the policy includes a total subsidy package of Rs. 100 billion, with Rs. 9 billion allocated for the current fiscal year.
Under the new plan, 116,000 electric bikes will be distributed within two years of implementation. Each electric bike and rickshaw will receive a subsidy of around Rs. 50,000 to make them more affordable for consumers. The policy will remain in effect until 2030 and seeks to address the failures of the previous EV policy, which significantly missed its targets.
Earlier goals had aimed for 500,000 two- and three-wheelers, but only 50,000 entered the market. Similarly, only 200 electric buses were introduced compared to a target of 1,000, and just 3,000 four-wheelers and 1,000 trucks were deployed out of a goal of 100,000 units.
The IMF-backed initiative aims to encourage energy-efficient transport and reduce reliance on traditional fuel-powered vehicles. Future subsidy allocations under the policy are projected at Rs. 19 billion in FY27, Rs. 24.16 billion in FY28, Rs. 26.62 billion in FY29, and Rs. 22.64 billion in FY30.
Prime Minister Shehbaz Sharif is expected to officially launch the policy and announce the rollout of electric bikes , during the Independence Day celebrations on August 14. The government hopes this initiative will accelerate the shift toward environmentally friendly transportation and help meet clean energy goals.
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