In a major step toward cleaner and more efficient transport, the government has rolled out a nationwide initiative to encourage the adoption of electric vehicles (EVs) and reduce dependence on fossil fuels.
The Pakistan Accelerated Vehicle Electrification (PAVE) scheme is designed to support a shift to affordable, sustainable mobility while boosting local EV manufacturing. Under the program, subsidies worth Rs100.36 billion will be disbursed over five years, up to 2030, covering electric bikes, rickshaws, loaders, cars, buses and trucks.
The Engineering Development Board (EDB), under the Ministry of Industries and Production, is implementing Phase-I as part of the New Energy Vehicles Policy 2025–30.
Phase-I offers financial and capital support for 41,000 EVs nationwide, including 40,000 electric bikes and 1,000 electric rickshaws and loaders. Phase-II will further extend support to 78,170 vehicles with a subsidy allocation of Rs8.95 billion during 2025–26.
Under the self-finance option, buyers pay upfront and receive a subsidy of up to Rs80,000 after verification, while the bank lease scheme offers subsidized instalment plans. Subsidy disbursements have already begun, with multiple government bodies ensuring transparent and efficient implementation.
