Islamabad – The federal government is set to unveil a new five-year Electric Vehicle (EV) policy on August 14, backed by the International Monetary Fund (IMF). The focus will be on promoting electric bikes and rickshaws, according to sources in the Ministry of Industries and Production.
For the current fiscal year, the IMF has allocated Rs. 9 billion out of a total Rs. 100 billion subsidy package to support the shift towards energy-efficient transport. Under the new policy, 116,000 electric bikes will be distributed within two years from the policy’s implementation. Each electric bike and rickshaw will receive a subsidy of around Rs. 50,000.
The new EV policy, developed in consultation with the IMF, will run through 2030 and aims to fix the shortcomings of the previous EV policy, which fell far short of its targets. Only 50,000 two- and three-wheelers entered the market against a goal of 500,000. Likewise, just 200 electric buses hit the roads versus a target of 1,000. For four-wheelers and trucks, only 3,000 and 1,000 units were introduced, respectively, out of a goal of 100,000.
Future subsidy allocations under the new plan are projected at Rs. 19 billion in FY27, Rs. 24.16 billion in FY28, Rs. 26.62 billion in FY29, and Rs. 22.64 billion in FY30. Prime Minister Shehbaz Sharif is expected to formally announce the launch of the new policy and the rollout of electric bikes on Independence Day, August 14
