The federal government has initiated a sweeping Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders for Fiscal Year 2026, launching a major push toward electric mobility nationwide. The State Bank of Pakistan (SBP) informed all banks on Monday that the scheme covers the financing of approximately 116,000 e-bikes and 3,170 e-rickshaws/loaders over two phases.
The most significant feature of this initiative is the financial relief: end-users will pay zero markup on their loans, as the government has committed to bearing the entire financing cost. Borrowers will only be responsible for paying the principal amount and insurance through monthly installments, with no processing charges.
Financing Details and Distribution
The scheme, which aims to boost green transport and employment, offers generous financing limits and subsidies:
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E-Bikes (Two-Wheelers): Maximum loan limit of Rs. 200,000 with a capital subsidy of up to Rs. 50,000. The loan tenor is two years.
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E-Rickshaws/Loaders (Three-Wheelers): Maximum loan limit of Rs. 880,000 with a capital subsidy of up to Rs. 200,000. The loan tenor is three years.
The financing uses an 80:20 debt-to-equity ratio, but the borrower’s 20% equity share will be waived if fully covered by the capital subsidy.
The government has also ensured equitable distribution, allocating:
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At least 25% of e-bikes to women.
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Up to 10% of e-bikes to business users (e.g., courier and delivery riders).
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Up to 30% of three-wheelers to fleet operators.
Eligibility and Implementation
Any Pakistani citizen with a valid CNIC (ages 18–65 for bikes; 21–65 for three-wheelers), including residents of Gilgit-Baltistan and AJK, is eligible. Banks will offer both conventional and Islamic financing through a digital lending platform managed by the Ministry of Industries & Production and the Engineering Development Board (EDB).
To mitigate bank risk, the scheme includes a 20% first-loss credit guarantee. Original Equipment Manufacturers (OEMs) vetted by the EDB will be responsible for vehicle delivery and crucial after-sales service.
