The government of Pakistan has announced interest free loan for electric bikes for interested people. To promote environmentally-friendly transportation and reduce pollution, the government plans to provide interest-free loans to 15,000 individuals interested in purchasing electric bikes.
This initiative will provide financial support to those who want to invest in eco-friendly transportation options. To be eligible for these interest free loan for electric bikes, certain criteria must be met. The government is committed to making the transition to electric bikes easier for individuals, as they are cost-effective and environmentally friendly.
By introducing this program, the government hopes to encourage more people to choose electric vehicles, especially in urban areas with alarmingly high pollution levels. Electric bikes offer several advantages to riders, which are widely known.
The Ministry of Climate Change has reported that a single charge of 2 units of electricity can power an EV bike for a range of 60-70 km, costing less than Rs1/km. In contrast, running a petrol bike costs approximately Rs5/km, making EV bikes significantly more cost-effective.
Due to the fuel-efficient nature of EV bikes, riders who cover approximately 40 km per day can potentially save up to Rs50,000 annually. This financial benefit is expected to make EV bikes more attractive to users, helping them save money while also reducing the country’s pollution levels.
The government’s effort to offer interest free loan for electric bikes is a commendable measure towards promoting the use of eco-friendly transportation alternatives in Pakistan. This initiative is anticipated to have a beneficial impact on both the economy and the environment, as it will lower pollution levels and help riders save money on fuel.
The Economic Coordination Committee (ECC) of Pakistan has authorized interest free loan for electric bikes and electric rickshaws to promote the development of electric vehicles in the country. The committee, which included federal ministers and senior officials, was chaired by the Federal Minister for Finance and Revenue, Senator Mohammad Ishaq Dar.
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A summary concerning financing options for electric bikes and e-rickshaws was submitted by the Ministry of Industries and Production, which was subsequently approved by the Economic Coordination Committee (ECC). The ECC endorsed the Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) framework for e-bikes and e-rickshaws.
The program will provide clean loans of up to PKR 0.5 million at a 0% markup rate, with a repayment period of three years. This funding opportunity will be accessible for up to 15,000 e-bikes/rickshaws during the current fiscal year.
The domestic market has an annual production of over 2 million units. The government has granted 22 manufacturing licenses for e-bikes, and the industry manufactured 7,377 e-bikes during the 2021-22 fiscal year.
