ECC Approves Subsidy for Electric Bikes and Rickshaws

The Economic Coordination Committee (ECC) has sanctioned a proposal to subsidize electric bikes, rickshaws, and loaders for Pakistani citizens. This decision was confirmed by the Finance Division following a session on Tuesday.

The ECC meeting was presided over by Finance Minister Muhammad Aurangzeb through virtual participation. Key economic issues were addressed, including the introduction of a new energy vehicle policy, the extension of financial aid for Quaid-i-Azam University, and the endorsement of a technical supplementary grant linked to the Telegraphic Transfer Charges Incentive Scheme.

National Electric Vehicle Policy 2025-30 Launched

The committee reviewed and gave the green light to a summary from the Ministry of Industries and Production regarding the implementation of a subsidy scheme to encourage the use of electric bikes, rickshaws, and loaders across Pakistan.

An allocation of Rs9 billion has been earmarked in the FY2025-26 budget to support this initiative. The plan also incorporates the distribution of complimentary electric bikes to high-achieving students in government colleges, according to the Finance Division.

According to the approved strategy, 116,000 electric bikes and 3,170 electric rickshaws/loaders will be launched in a two-phase rollout. The initial phase, expected to be inaugurated by the prime minister soon, will see the introduction of 40,000 electric bikes and 1,000 electric rickshaws/loaders.

Additionally, the ECC assessed and endorsed a technical supplementary grant of Rs30 billion, as requested by the Finance Division, to cover outstanding claims of Rs58.26 billion from the previous fiscal year under the Telegraphic Transfer Charges Incentive Scheme.

The committee has instructed the Finance Division to collaborate with the State Bank of Pakistan (SBP) to determine the payment procedures for the grant. Furthermore, it directed the Finance Division to conduct a comprehensive evaluation, including a cost-benefit analysis, financial models, and opportunity cost assessment of the Pakistan Remittance Initiative, alongside the SBP. The final recommendations, incorporating stakeholder feedback, are due by mid-September, following an in-depth analysis by the end of August.

The ECC also gave preliminary approval for a Rs2 billion bailout grant for Quaid-i-Azam University, subject to the development and presentation of a thorough financial self-sustainability plan.

The university, working with the Higher Education Commission, must present a clear strategy for achieving long-term financial stability and reducing its reliance on future bailout packages.

Federal Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Petroleum Ali Pervaiz Malik, Minister for National Food Security and Research Rana Tanveer Hussain, and other high-ranking officials from relevant ministries and departments attended the meeting.