E-Bikes made affordable under new 80:20 debt-to-equity plan; full details here

ISLAMABAD – Pakistani government rolled out ‘Cost Sharing Scheme for Electric Bikes and Loader Rickshaws’ as the initiative, announced on Monday, aims to finance around 116,000 e-bikes and 3,170 e-rickshaws loaders during the fiscal year 2025-26, giving citizens a chance to embrace cleaner, more sustainable transport.

The distribution of vehicles will occur in two phases. The first phase will cover 40,000 e-bikes and 1,000 e-rickshaws/loaders, while the second phase will distribute the remaining 76,000 e-bikes and 2,171 e-rickshaws/loaders.

A special quota system has been introduced to ensure inclusivity. At least 25% of e-bikes will be reserved for women, while up to 10% will be available for individuals engaged in businesses such as courier and delivery services. For rickshaws and loaders, 30% of the quota has been allocated for fleet operators.

The scheme is open to all Pakistani citizens with a valid CNIC, including residents of Gilgit-Baltistan and Azad Jammu & Kashmir, within specific age ranges. For e-bikes, applicants must be between 18 and 65 years old, and for rickshaws/loaders, between 21 and 65 years. Fleet operators are also eligible to apply for rickshaws/loaders, with eligibility criteria determined by a steering committee.

To make financing affordable, the government will provide capital subsidies of up to Rs50,000 per e-bike and Rs200,000 per rickshaw/loader. Loans will follow an 80:20 debt-to-equity ratio, with the equity portion including both the subsidy and the borrower’s contribution. If the subsidy fully covers the equity portion, borrowers will not need to make any payment.

The loans will be interest-free for end users, with the government absorbing the full markup cost. Repayment periods are set at a maximum of two years for e-bikes and three years for rickshaws/loaders, with monthly installments covering only the principal and insurance.

The SBP stated that the scheme will operate through a digital lending platform to minimize human interaction. Banks will integrate with the platform to streamline information sharing. Vehicle models and vendors will be shortlisted by the Engineering Development Board (EDB), with manufacturers responsible for timely delivery and providing regular after-sales service.