ECC approves subsidised e-bikes scheme

ISLAMABAD: The Economic Coordination Committee (ECC) on Thursday approved a loan scheme to provide e-bikes/e-rickshaws on zero percent markup and repayment in three years.

Federal Minister for Finance Ishaq Dar accorded the approval while presiding over the meeting of the ECC of the Cabinet.

During the meeting, the Ministry of Industries and Production submitted a summary regarding financing facility for electric bikes (E-bikes) and E-Rickshaws.

As per the statement issued by the finance ministry, the ministry presented details on the viability, and demand of electric bikes and incentive structure for potential users to make electric bikes affordable.

“In order to create quick and sustainable demand for E-Bikes/Rickshaws in the country, the ECC after discussion approved Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) model for E-Bikes/E-Rickshaws.

“Under the scheme, a clean loan of up to Rs0.5 million will be given under Tier-I (T1) of PMYB&ALS at 0% markup rate for repayment in three years. This facility will be available for up to 15,000 E-Bikes/Rickshaws in the current financial year,” read the statement.

E-bike scheme

Under the proposed scheme, a 24-monthly installment plan has also been given under which the customer will be paying Rs4,310 per month which includes the principal amount of Rs2,917, interest payment of Rs1,109 and insurance payment of Rs284 (2pc).

GOVT TO INTRODUCE E-BIKES TO SAVE ENERGY

The ministry expects the production/sale of 15,000 e-bikes during the ongoing FY2022-23 whereas 60,000 and 100,000 e-bikes are targeted to be produced in 2024-24, 2024-25, respectively, making the total production of 175,000 e-bikes in three years.

The e-bikes would be provided to students with salaried parents, female students/employees (20pc quota), transgender persons (1pc quota), government employees, private sector salaried/self-employed individuals with NTN and bank account, government/armed forces pensioners and Imam Masjid/Hafiz Quran/ Muazzam, duly qualified from an institute recognised by Government of Pakistan (endorsed by Ministry of Religious Affairs).

Under the subsidy leasing model, the Rs100,000 are met on sharing basis by the government and consumer whereas Rs70,000 would be provided by banks as a loan with a 50pc credit guarantee by the government.

The scheme is likely to start in Islamabad, Peshawar, Quetta, Lahore and Karachi in the first phase.