Prime Minister Shehbaz Sharif is expected to formally announce the country’s new EV policy on August 14 to promote electric vehicles (EVs) over petrol and diesel-powered transport.

Under the new policy, the government is expected to offer 116,000 electric bikes on easy two-year instalments.

According to officials, the scheme is in its final phase of preparation and is being jointly developed by the State Bank of Pakistan and the Pakistan Banks Association.

Under the scheme, a subsidy of Rs50,000 will be offered per electric bike or rickshaw, making them more affordable for the general public.

Eligibility for the scheme will be open to individuals aged between 18 and 65 years.

The estimated price of an electric bike under the program is approximately Rs 250,000.

With the subsidy in place, the remaining amount, slightly over Rs200,000, will be payable in monthly instalments over two years.

Seventeen companies have so far secured licenses to manufacture electric bikes in Pakistan, as part of the government’s broader target to shift 30% of all vehicles to electric by 2030.

The EV policy also outlines the goal of transitioning 90% of the country’s vehicles to electric by the year 2040.

To ensure the success of this transition, the government plans to allocate Rs100 billion in subsidies over the next five years.