The federal government has devised a plan to manufacture 100,000 e-bikes within 18 months in an effort to conserve energy and reduce carbon emissions.
The plan has not yet been launched and the Economic Coordination Committee (ECC) is currently evaluating the program before it is launched.
According to the documents available with ProPakistani, the Ministry of Industries and Production (MoIP) will ensure the production of at least 100,000 e-bikes in the first year and a half.
It has proposed Rs. 17.5 billion subsidies to encourage the purchase of e-bikes, which are relatively more expensive compared to petrol-powered bikes.
The program entails that the government will pitch in a downpayment of Rs. 90,000 for an e-bike with an estimated price of Rs. 170,000, while the buyer would pay Rs. 10,000, for a total initial payment of Rs. 100,000.
The bank will charge an interest rate of Kibor+2 or 19 percent, which is approximately Rs. 13,300 for a commercial loan of Rs. 70,000.
Under the proposed scheme, the government offers a 24-monthly installment plan, under which, the customer will pay Rs. 4,310 per month, comprised of Rs. 2,917 in principal, Rs. 1,109 in interest, and Rs. 284 or 2% in insurance.
The ministry anticipates the production and sale of 15,000 e-bikes in the current fiscal year 2022-23, followed by 60,000 and 100,000 e-bikes in fiscal years 2023-24 and 2024-25 respectively, for a total of 175,000 e-bikes produced in three years.
The e-bike scheme will be available for:
Under the subsidy leasing model, the government and consumers each will contribute Rs. 100,000, while banks provide a loan of Rs. 70,000 with a 50% credit guarantee from the government. A media report adds that the government will likely launch this program in Islamabad, Peshawar, Quetta, Lahore, and Karachi.