Govt Approves New Loan Scheme for Electric Bikes and Rikshaws

The Economic Coordination Committee of the federal cabinet on Thursday approved financial proposals of Ministries/Divisions including a Loan Scheme for E-Bikes/E-Rikshaws on zero percent markup, and the supply of sugar at Rs. 95 per kg in Punjab during the Holy Month of Ramazan.

Federal Minister for Finance and Revenue Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet, today.

Federal Minister for Power Khurram Dastgir Khan, Federal Minister Commerce Syed Naveed Qamar, Federal Minister for Industries and Production Syed Murtaza Mahmud, Federal Minister for National Food Security & Research Chaudhry Tariq Bashir Cheema, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, Coordinator to the PM on Economy Bilal Azhar Kayani, Federal Secretaries and other senior officers attended the meeting.

Ministry of Industries and Production submitted a summary regarding financing facilities for electric bikes (E-bikes) and E-Ricksaws and presented details on the viability, and demand of electric bikes and incentive structure for potential users to make electric bikes affordable.

In order to create a quick and sustainable demand for E-Bikes/Rickshaws in the country, the ECC after discussion approved Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) model for E-Bikes/E-Rickshaws. Under the scheme, a clean loan of up to Rs. 0.5 million will be given under Tier-I (T1) of PMYB&ALS at a zero percent markup rate for repayment in three years. This facility will be available for up to 15,000 E-Bikes/Ricksaws in the current financial year. The modalities of the scheme will be worked out by the Ministry of Induatries & Production in coordination with PMYB&ALS.

The ECC considered and approved the summary of the Ministry of Commerce regarding the declaration of Customs Station Angoor Adda as an authorized export land route to Afghanistan and through Afghanistan to Central Asian Republics.

The ECC considered a summary of the Aviation Ministry and approved an increase in GoP guarantee related to USD-denominated loans of PIACL to the tune of Rs. 15,607,394,711/- by enhancing the existing guarantee limit of Rs. 247.630 billion to Rs. 263.237 billion.

Ministry of National Food Security and Research tabled a summary on the price of sugar during the month of Ramazan and briefed the meeting on the outcome of the Sugar Advisory Board’s meeting with PSMA regarding the retail price of sugar. The ECC endorsed the decisions of the meeting, that PSMA Punjab Zone has agreed to provide 20,000 MT of sugar at a retail price of Rs. 95 per kg during the month of Ramazan ( till Eid-ul-Fitar) for sale to the general public through the Government of Punjab at the district level. The ECC further directed to make arrangements with other provincial PSMAs on a similar pattern for the provision of sugar in other provinces/areas.

ECC approved the following Technical Supplementary Grants/Supplementary Grants:

1. Rs. 261 million in favour of the Ministry of Housing and Works for the execution of the development scheme – Construction of railway underpass Jahanian, District Khanewal.
2. USD 0.5 million equivalent to Rs. 142.5 million Rupee Cover in favour of the Ministry of National Health Services, Regulations and Coordination, committed by the SAARC Development Fund for the standard package for strengthening preventive and curative activities for mental health and condition of Covid-19 research activities.
3. Rs. 250 million in favour of the Ministry of Housing and Works for repair & maintenance of the Supreme Court of Pakistan building, Judges’ residences, rest houses & sub- offices in various cities.
4. Rs. 22 million in favour of the Ministry of Foreign Affairs for payment of liabilities of electricity.