ECC okays electrical vehicle subsidy to promote electric bikes, rickshaws

ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet on Tuesday approved a series of major financial measures, including the launch of a national electric vehicle subsidy scheme, a Rs30 billion technical supplementary grant (TSG) to settle remittance claims, and a conditional bailout for Quaid-i-Azam University (QAU).

The ECC meeting, chaired virtually by Federal Finance Minister Senator Muhammad Aurangzeb, was attended by ministers and senior officials from the power, petroleum, and food security ministries.

Electric vehicle subsidy to distribute electric bikes and electric rickshaws

Among the key decisions was the approval of a long-awaited electric vehicle subsidy plan aimed at accelerating the adoption of electric bikes and rickshaws across the country.

The Ministry of Industries and Production presented the scheme, which has already received a budgetary allocation of Rs9 billion for FY2025–26.

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Under the programme, the government will distribute 116,000 electric bikes and 3,170 electric rickshaws/loaders in two phases.

The initial rollout, expected to be launched by the prime minister soon, includes 40,000 electric bikes and 1,000 electric rickshaws. The scheme also offers free electric bikes to top-performing students at public-sector colleges.

20,000 Bikes shall be provided to Students under the Chief Minister's Youth Initiative.

Agreement was signed between the Transport & Masstransit Department & BOP.

CM Punjab Ms. Maryam Nawaz Sharif witnessed the signing ceremony. Minister Transport Mr. Bilal Akbar was present. pic.twitter.com/5i2totydsF

— Transport & Masstransit Deptt (Punjab), Pakistan (@TransportDeptt) March 22, 2024

Rs30bn reimbursement scheme grant

In a separate decision, the ECC approved a Rs30 billion TSG to clear pending reimbursement claims under the Telegraphic Transfer Charges Incentive Scheme from FY2024–25.

These claims amount to Rs58.26 billion in total. The ECC directed the Finance Division to coordinate with the State Bank of Pakistan (SBP) to finalise payment modalities and also ordered a detailed assessment of the remittance scheme.

The review will include financial analysis, opportunity cost evaluation, and stakeholder input, with final recommendations due by mid-September.

Rs2bn bailout grant for QAU

The ECC also gave in-principle approval for a Rs2 billion bailout grant for Quaid-i-Azam University.

However, disbursement will depend on the university presenting a financial self-sustainability plan, developed in collaboration with the Higher Education Commission.

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The plan must outline steps to ensure long-term financial viability and reduce the university’s dependence on government bailouts.

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