ECC okays Rs9b EVs subsidy, free electric bikes to students
Staff Report
ISLAMABAD: The Economic Coordination Committee of the Cabinet on Tuesday approved a Rs9 billion nationwide subsidy to promote electric bikes and rickshaws/loaders in Pakistan, according to the Finance Division.
The ECC meeting, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, deliberated on several important economic issues. Finance Minister Aurangzeb participated in the meeting virtually.
Key agenda items included the rollout of a new energy vehicle policy, the extension of grants-in-aid for Quaid-i-Azam University, and the approval of a technical supplementary grant for the Telegraphic Transfer Charges Incentive Scheme.
“The committee approved a proposal submitted by the Ministry of Industries and Production to implement a subsidy scheme aimed at promoting the adoption of electric bikes and rickshaws/loaders in Pakistan,” the Finance Division said.
“A budget of Rs9 billion has already been allocated for FY2025-26 to fund this initiative. The scheme also includes providing free electric bikes to top-performing students of government colleges.”
Under the approved plan, 116,000 electric bikes and 3,170 electric rickshaws/loaders will be introduced in two phases. The first phase, which is expected to launch shortly under the Prime Minister’s initiative, will roll out 40,000 electric bikes and 1,000 electric rickshaws/loaders.
In other matters, the ECC approved a Rs30 billion technical supplementary grant, as requested by the Finance Division, to settle outstanding claims from the previous fiscal year, which total Rs58.26 billion, under the Telegraphic Transfer Charges Incentive Scheme.
The committee also gave in-principle approval for a Rs2 billion bailout grant for Quaid-i-Azam University, contingent on the submission of a comprehensive financial self-sustainability plan.
Earlier, Senior Provincial Minister Marriyum Aurangzeb on Monday announced a cash reward of Rs100,000 for motorcyclists and bikers who convert their petrol bikes into electric vehicle.
Speaking at a ceremony in Lahore, Marriyum Aurangzeb said the Punjab government has launched a forest initiative allowing citizens and industries to adopt parks and forests to offset their carbon footprint.
She added that the Environment Department has also introduced a Green Credit Program, under which citizens can earn financial incentives in the form of green credits by planting trees.
