The State Bank of Pakistan (SBP) has launched an ambitious financing program designed to accelerate the adoption of electric mobility across Pakistan. The new cost-sharing scheme focuses on promoting electric bikes, rickshaws, and loaders, aligning with the country’s broader goals of reducing carbon emissions, curbing fuel consumption, and promoting sustainable urban transport solutions.
Announced in collaboration with the federal government, the initiative is a significant step toward fostering energy-efficient transportation and supporting Pakistan’s transition toward green technology. According to the SBP, the financing program will facilitate the purchase of more than 116,000 electric bikes and over 3,000 electric rickshaws during the fiscal year 2025–26. This move reflects the government’s increasing emphasis on electric vehicles (EVs) as part of its national strategy to promote clean energy and combat environmental pollution.
The program will be implemented in two distinct phases. In the initial rollout, 40,000 electric bikes and 1,000 e-rickshaws will be financed, while the second phase will cover the remaining units, ensuring broad coverage and sustainable scaling of the initiative. The SBP highlighted that the project’s design ensures inclusivity, empowering women and small-scale entrepreneurs in particular. At least 25 percent of the financed bikes will be allocated to women, while 10 percent will go to individuals intending to use their vehicles for commercial purposes, including courier and delivery services. Additionally, 30 percent of the e-rickshaws will be reserved for fleet operators to help modernize the logistics and passenger transport sectors.
A defining feature of the scheme is its zero-markup financing model. End-users will benefit from an interest-free financing rate, as the federal government will bear the entire markup cost under the subsidy program. Applicants will only be responsible for equity contributions and vehicle registration costs, making ownership more accessible to low and middle-income groups. The loans will be available through both conventional and Islamic banking channels, with flexible repayment periods of up to three years.
In a statement, the SBP underscored its commitment to promoting digital transparency and ease of access in the application process. Banks participating in the program have been instructed to integrate their systems with a centralized digital portal to ensure seamless, transparent, and efficient loan disbursement. This integration will allow applicants to track their applications in real time while enabling the central bank to monitor financing activity across institutions.
Analysts have welcomed the move, noting that it could mark a turning point in Pakistan’s green transport policy. The adoption of electric bikes and rickshaws could significantly reduce fuel demand, which currently accounts for a major share of the country’s import bill. Moreover, the scheme aligns with Pakistan’s commitments to environmental sustainability and its efforts to reduce carbon emissions under international climate frameworks.
The initiative also holds the potential to create new opportunities for domestic manufacturing, as local assemblers of electric vehicles are expected to benefit from increased demand. In the long run, the SBP’s program could help cultivate a broader EV ecosystem, including charging infrastructure, parts manufacturing, and maintenance services, ultimately supporting both economic growth and environmental stewardship.
By offering affordable and accessible green financing, the central bank is setting a new benchmark for inclusive and sustainable economic development. The initiative represents a fusion of financial innovation and environmental responsibility—two areas that will define Pakistan’s economic trajectory in the coming decade.
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