Government's Installment Scheme for E-Bikes and E-Rickshaws

The federal government of Pakistan has introduced a loan scheme under the Prime Minister's Youth Business & Agriculture Scheme (PMYB&ALS) to promote environment-friendly electric bikes and e-rickshaws. This initiative was approved by the Economic Coordination Committee (ECC) of the Cabinet, chaired by the Minister of Finance, Ishaq Dar.

Loan Scheme

The loan scheme offers four financing options, including a cash purchase model, a price sharing model, an Easy Loan model, and PM's Youth Business and Agriculture loan scheme model for e-bikes and e-rickshaws. Under Tier-I (T1) of PMYB&ALS, eligible borrowers can avail a loan of up to Rs. 500,000 at a zero percent markup rate, with a repayment period of three years. It is estimated that up to 15,000 e-bikes and e-rickshaws can benefit from this facility during the current fiscal year, with plans to increase the number to 60,000 in the next fiscal year (2023-2024) and 100,000 in the fiscal year after that (2024-2025). The government aims to distribute a total of 175,000 electric bikes and rickshaws over the course of three years.

The Industries and Production Minister presented a summary on the viability of financing facilities for electric bikes and e-rickshaws during the ECC meeting. This initiative is part of the government's efforts to make electric bikes more affordable in Pakistan, the fifth most populous country in the world.

In summary, the federal government of Pakistan has approved a loan scheme under PMYB&ALS to promote electric bikes and e-rickshaws, with up to 15,000 beneficiaries expected in the current fiscal year, and plans to distribute a total of 175,000 electric bikes and rickshaws over the next three years.