Pakistan’s subsidized electric bike scheme has hit a major roadblock, and the problem is not a lack of buyer interest. It is a bank approval.
Commercial banks approved only 4,075 applications out of 44,689 received under the government’s electric bike financing scheme. That means nearly 91% of e-bike requests were denied, prompting the government to revise the policy.
The changes were approved by the Economic Coordination Committee under the Pakistan Accelerated Vehicle Electrification Program (PAVE).
What Went Wrong?
The government launched the scheme to promote electric bikes, rickshaws, and loaders through subsidies. The idea was to reduce the price gap between electric vehicles and conventional petrol vehicles.
However, banks did not process or approve applications at the required pace. Out of 44,689 applications sent to banks, only 9,889 were processed, and just 4,075 were approved.
This has badly slowed the program. Against the fiscal-year target of over 119,000 electric bikes and rickshaws, only 5,409 have been approved so far. That is just 4.5% of the target, with the fiscal year ending on June 30.
Govt Now Wants to Reduce Banks’ Role
After the poor response from banks, the government has decided to promote self-finance and supplier-based options in the next phase.
Under the revised plan, applicants may be able to receive an electric vehicle directly from the supplier after paying the notified price minus the applicable subsidy. This means buyers would not need to pay the full amount upfront and then wait for reimbursement.
The government is also introducing a separate self-finance scheme for federal government employees in BS-16 and below. Under this option, the manufacturer will deliver an electric bike after an upfront payment of Rs 10,000, while rickshaws and loaders will require an upfront payment of Rs 100,000.
Self-Finance Worked Better Than Banks
The numbers show why the government is changing direction.
While banks approved only 9% of applications, the self-finance route performed much better. Out of 1,339 self-finance applicants, 1,334 received electric bikes, and 1,033 received cost-sharing subsidies in their accounts.
That makes the issue clear: demand exists, but the bank-financing model is slowing the scheme.
More EV Bikes Planned
The government is also considering a fast-track rollout of 100,000 electric bikes within three months, using existing CKD kits already available in Pakistan or on the way.
Under this plan, manufacturers would receive a subsidy of Rs80,000 per bike, linked to proof of delivery and registration. Officials estimate this could save 8.6 million liters of petrol in three months and around $222 million over five years.
Why This Matters
This matters because the scheme is funded through a levy collected from petrol and diesel users. Consumers are already paying Rs 2.5 per liter as a climate support levy, and it is expected to double effective July.
So, if people are paying for EV adoption through fuel, the program needs to deliver actual electric bikes, not just application numbers.
Pakistan wants more EV adoption, but a subsidy alone is not enough. Financing, delivery, verification, registration, and after-sales support all need to work together.
Who Should Pay Attention?
This story matters for daily motorcycle commuters, students, low-income buyers, delivery riders, fleet operators, EV bike manufacturers, dealers, banks, and anyone paying petrol and diesel prices.
It also matters for buyers waiting for a subsidized EV bike through the PAVE program.
PakWheels Take
The government’s EV bike scheme has the right goal, but the execution needs fixing.
If banks are rejecting most applicants, then the financing model is clearly not working for ordinary buyers. Moving toward self-finance and supplier-based delivery may help, but only if the process is transparent, fast, and easy to verify.
For buyers, the decision is simple: do not assume bank approval is guaranteed. Track the revised PAVE options, confirm eligibility, check approved models, and avoid paying anyone without verified registration and proof of delivery.
Pakistan needs more than just EV bike targets. It needs EV bikes to actually reach riders.
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