Here Is Everything You Need to Know About the Government's E-Bike and E-rickshaw on installment from bank Programme

Government’s E-Bike and E-rickshaw on installment from bank Programme Up to Rs. 1,000 will be provided by the federal government. 0.5 million loans for electric bikes and rickshaws under the Prime Minister’s Youth Business and Agriculture Scheme (PMYB&ALS) model.

The PMYB&ALS model for electric bikes and rickshaws was approved by the Economic Coordination Committee (ECC) of the Cabinet, which was headed by the Finance Minister.

The Ministry of Industries and Production provided details on the viability, demand, and incentive structure for potential users of electric bikes, as well as a summary of financing options for electric bikes (E-bikes) and Rickshaws.

Import Duty on Specific Parts for Electric Vehicles According to sources who spoke with ProPakistani, the federal government has approved the import of specific parts for electric vehicles at a rate of 1% Customs Duty and 1% Sales Tax to make it easier to produce electric vehicles in the country.

E-Bike Market and EV Penetration Target in Pakistan In its 2019 EV Policy, the Ministry of Climate Change has established an EC penetration target of 50% of new two- and three-wheeler EV sales by 2030.

On December 28, 2022, a comprehensive presentation on e-bikers was given to the federal government, according to specifics. It was additionally educated that in excess of 26 million cruisers are in the nation and the yearly market size of privately delivered bikes is multiple million.

Government’s E-Bike and E-Rickshaw on installment from bank Programme Cost of E-Bikes and Financing Options An e-bike with specific standards and a lithium battery typically costs Rs. 190,000.

The PM’s Youth Business and Agriculture loan scheme model for E-bikes/E-Rickshaws is one of four financing options that the government has made available, including a cash purchase model, a price sharing model, an Easy Loan model, and others.

A straightforward loan of up to Rs. 0.5 million will be given under Level I (T1) of PMYB&ALS at a 0 percent markup rate for reimbursement in three years.

In addition, the loan has a repayment term of three years, and in order to investigate the possibility, a meeting was held with representatives of SBP and other stakeholders. These stakeholders were in favor of the plan and would make any necessary modifications to the PM’s Youth Business and Agriculture Loan Scheme for E-Bikes and E-rickshaw on installment from bank.

Also read: the reasons for the annual 20% decline in vehicle financing

According to sources, each of the four schemes mentioned above has distinct financial requirements and requires financing from commercial banks or the government. Up to 15,000 E-Bikes/Rickshaws can use this facility in the current fiscal year, 60,000 in the 2023-2014 fiscal year, and 100,000 in the 2024-2015 fiscal year. In three years, the government intends to distribute 175,000 E-Bikes and rickshaw on installment from bank.

The modalities of the plan will be worked out by the Service of Ventures and Creation in a joint effort with PMYB&ALS.