Pakistan's ECC Approves Major Subsidy Scheme for Electric Vehicles
The Economic Coordination Committee (ECC) of Pakistan's Cabinet, chaired virtually by Finance Minister Muhammad Aurangzeb, has officially approved a new subsidy scheme to promote electric bikes and rickshaws. A budgetary provision of Rs9 billion has been allocated for the fiscal year 2025-26 to finance this initiative. The plan is designed to make electric vehicles (EVs) more accessible to Pakistani citizens and includes a special provision for top-performing students of government colleges, who will receive free electric bikes.
Also read: HBL and SEDF Forge Strategic Partnership to Drive SME Growth in Sindh
The scheme will be implemented in two phases, targeting a total rollout of 116,000 electric bikes and 3,170 electric rickshaws/loaders. The initial phase, which is expected to be launched by the Prime Minister soon, will introduce 40,000 electric bikes and 1,000 electric rickshaws/loaders. This strategic move aims to not only transition Pakistan towards more sustainable transportation but also to incentivize academic excellence among the youth.
In addition to the EV subsidy, the ECC approved a technical supplementary grant of Rs30 billion to settle outstanding claims from the previous fiscal year under the Telegraphic Transfer Charges Incentive Scheme. The committee has directed the Finance Division to collaborate with the State Bank of Pakistan (SBP) to finalize payment modalities. A detailed assessment of the Pakistan Remittance Initiative is also underway, with final recommendations expected by mid-September.
Finally, the ECC gave a conditional approval for a Rs2 billion bailout grant for Quaid-i-Azam University. The grant is contingent on the university and the Higher Education Commission submitting a comprehensive plan to achieve long-term financial self-sustainability. This requirement aims to reduce the university’s future reliance on government bailout packages and ensure its financial stability.
Post a Comment