Under the Prime Minister’s Youth Business & Agriculture Scheme (PMYB&ALS) program, the federal government would lend up to Rs. 0.5 million for e-bikes and e-rickshaws.
The PMYB&ALS model for e-bikes and e-rickshaws was authorised by the Economic Coordination Committee (ECC) of the Cabinet, which is presided over by the minister of finance.The Ministry of Industries and Production provided information on the viability, demand, and incentive structure for potential users to make electric bikes accessible in a summary about financing options for electric bikes (E-bikes) and E-Rickshaws.
Import Duty on Electric Vehicles’ Specific Parts
According to sources, the federal government has made it possible for the country to manufacture electric vehicles by allowing the import of certain parts at a cost of 1% customs duty and 1% sales tax.
EV Penetration Target and E-Bike Market in Pakistan
The Ministry of Climate Change has established the EC penetration objective of 50% of new sales of two- and three-wheeler EVs by 2030 in its EV strategy for 2019.
Details indicate that on December 28, 2022, a thorough presentation on e-bikers was delivered to the federal government. Additionally, it was disclosed that the number of motorbikes in the nation exceeds 26 million, with a more than 2 million motorcycles made domestically sold year.
The yearly fuel consumption of existing bikes on the road is $3 billion. The EDB has granted 22 production licences to E-biker producers, and 7,377 electric motorbikes were produced in 2021–2022.
Cost of E-Bikes and Financing Schemes
An e-bike with a lithium battery and certain requirements costs, on average, Rs. 190,000.
The government has proposed four financing options for e-bikes and e-rickshaws, including cash purchases, price sharing, easy loans, and the PM’s Youth Business and Agriculture Loan Scheme model.
In accordance with the plan, a clean loan up to Rs. 0.5 million would be provided under Tier-I (T1) of PMYB&ALS at a 0% markup rate with a three-year payback period.
The loan repayment period is three years, and in order to explore the possibility, a meeting with representatives of SBP and other stakeholders who supported the programme were held. If necessary, amendments were made to the PM’s Youth Business and Agriculture Loan Scheme to include E-Bikes and E-Rickshaws.
According to sources, the four plans described above each have different financial requirements and need funding from either the government or private institutions. This facility will be open to up to 15,000 E-Bikes/Rickshaws during the current fiscal year, 60,000 during the following fiscal year (2023–2024), and 100,000 during the following fiscal year (2024–2025). In three years, the government intends to distribute 175,000 electric bikes and rickshaws.
The Ministry of Industries & Production will develop the scheme’s modalities in collaboration with PMYB&ALS.
