The Pakistani government is set to announce a groundbreaking Electric Vehicle Loan Scheme worth Rs 4 billion, aimed at introducing 42,000 electric vehicles (EVs) into the market. This initiative includes 40,000 two-wheelers and 2,000 three-wheelers, with loans offered at discounted rates under the proposed EV policy, according to sources. A significant 25% of the vehicles will be reserved for women, while the remaining 75% will be allocated for general users. This ambitious scheme, which is part of the government’s broader clean energy transition efforts, is expected to be announced in the upcoming budget.
The Electric Vehicle Loan Scheme will offer loans ranging between Rs 250,000 and Rs1 million, with an interest rate of KIBOR plus 3%, which will be subsidized for consumers. A steering committee, which convened earlier this week, reviewed the details of the proposed policy, ensuring that it aligns with the national agenda for sustainable development.
In addition to vehicle loans, the government will invest in the necessary EV infrastructure. This includes setting up charging stations along major highways such as the Motorways, Grand Trunk (GT) Road, N-65, and N-70, facilitated by oil marketing companies and funded through corporate social responsibility (CSR) initiatives. The policy also proposes establishing battery-swapping stations for three-wheelers in key urban centers.
Moreover, the Electric Vehicle Loan Scheme will incentivize EV adoption by providing concessional credit for buyers and investment credits to encourage local manufacturing. The creation of a New Energy Vehicle Fund (NEVF) will further accelerate EV adoption, with seed funding provided by the federal government. To support these initiatives, proceeds from levies on conventional vehicles and contributions to the Green Fund for climate finance will be leveraged.
The policy is expected to be finalized within a month, following multiple steering committee meetings chaired by the Minister for Industries and Production, Rana Tanveer Hussain. The committee includes high-level officials from various ministries and departments, with a focus on promoting energy efficiency and the shift to clean technologies in Pakistan’s automotive sector. The committee is tasked with providing regular updates to the prime minister and is expected to submit its final recommendations by the end of November 2024.
In alignment with national climate goals, the policy will focus on reducing carbon emissions by transitioning federal government fleets to EVs and establishing a comprehensive tariff structure to promote local EV manufacturing.
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Public awareness campaigns will also be launched to educate consumers about the environmental benefits and cost savings of EVs, further reinforcing the importance of the Electric Vehicle Loan Scheme in driving the country’s green transition.
