All You Need to Know About Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders

The federal government has rolled out a major new initiative to promote electric vehicles, announcing a ‘Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders’ aimed at making green transport more accessible and affordable across Pakistan.

According to details released by the State Bank of Pakistan, the scheme will finance around 116,000 electric bikes and 3,170 electric rickshaws or loaders during the fiscal year 2025-26.

The program is designed to encourage energy efficiency and accelerate the shift to environmentally friendly technologies in the country’s automotive sector.

Who Can Apply?

All Pakistani citizens, including those in Gilgit-Baltistan and Azad Jammu & Kashmir, are eligible, provided they meet the age requirements: 18-65 years for e-bikes and 21-65 years for rickshaws/loaders.

Fleet operators can also apply for rickshaw/loader financing, with specific eligibility criteria to be set by a steering committee.

Special Quotas

The scheme reserves at least 25% of e-bikes for women, and up to 10% for people using bikes for business purposes like delivery services. For rickshaws and loaders, up to 30% will be allocated to fleet operators.

How It Works

The scheme will be rolled out in two phases:

Phase 1: 40,000 e-bikes and 1,000 e-rickshaws/loaders
Phase 2: 76,000 e-bikes and 2,171 e-rickshaws/loaders

Financing will be available through both conventional and Islamic banking channels. The maximum loan size is set at Rs. 200,000 for two-wheelers and Rs. 880,000 for three-wheelers.

Borrowers will benefit from a capital subsidy of up to Rs. 50,000 for e-bikes and up to Rs. 200,000 for rickshaws/loaders, with an 80:20 debt-to-equity ratio. If the subsidy covers the full 20% equity requirement, the borrower pays nothing up front.

Zero Markup, Minimal Charges

The government will fully subsidize the markup, so end users pay 0% interest. Repayments will be spread over a maximum of two years for e-bikes and three years for rickshaws/loaders, with monthly installments covering only the principal and insurance.

There are no loan processing or early settlement charges.

Digital-First Approach

Applications and processing will be handled through a digital platform, minimizing human interaction. Banks will integrate their systems with a centralized portal managed by the Ministry of Industries & Production and the Engineering Development Board.

Other Features

• Only vehicle models shortlisted by the EDB will be eligible.
• Borrowers must provide a valid CNIC and a digital undertaking for a driving license.
• The government will cover costs for background checks via NADRA and the mobile number portability database.
• Insurance rates will be negotiated centrally, with the first year’s premium paid upfront.

Risk Management

A 20% portfolio guarantee on a first-loss basis will be provided, with claims processed after 180 days of non-payment.

Banks have been instructed to prepare their systems and integrate with the scheme’s centralized portal to ensure smooth implementation.