PAVE Phase 2: Rs 9 Billion EV Subsidy Approved — 78,000+ Bikes and Rickshaws, Rs 80,000 Per Unit, First-Come First-Served

May 7, 2026Zayn0
 

Automotive & EV Desk  |  May 2026  |  5 min read

 

⚡ Quick Takeaways

•       The ECC has approved a Rs 9 billion package for PAVE Phase 2, targeting 76,000 electric bikes and 2,170 rickshaws and loaders under the NEV Policy 2025–30.

•       A fixed subsidy of Rs 80,000 per electric bike will be paid directly to pre-qualified OEMs; distribution will move to first-come, first-served from the previous balloting system.

•       A fast-track rollout of an additional 100,000 bikes within three months is awaiting ECC approval, using around 130,000 CKD kits available domestically and in transit.

•       Government employees in BS-16 and below can access bikes with a Rs 10,000 down payment and interest-free payroll deductions over 6–18 months.

•       The programme projects savings of 8.6 million litres of petrol short-term and USD 222 million over five years; 600 free bikes will also be awarded to HSSC top performers.

 

With fuel costs at historic highs and over a quarter million applications received in Phase 1, the federal government has moved to scale Pakistan’s EV subsidy programme significantly. The ECC’s approval of Rs 9 billion for PAVE Phase 2 — combined with a proposed fast-track addition of 100,000 bikes — signals that the NEV Policy 2025–30 is being treated as a live fuel-import reduction instrument rather than a long-term aspiration.

FY26 Budget Approved Phase 2 EV Target Subsidy per Bike
Rs 9 Billion 78,170 Vehicles Rs 80,000

 

Phase 2 Targets, Funding and Fast-Track Addition

The ECC has approved Rs 9 billion for PAVE Phase 2 under the NEV Policy 2025–30, funded on a revenue-neutral basis through the NEV Adoption Levy Act 2025. The overall FY2026 target is 119,170 vehicles. After Phase 1 covered 41,000 units, Phase 2 targets 76,000 electric bikes and 2,170 rickshaws and loaders — a combined 78,170-vehicle target.

Beyond Phase 2, a fast-track rollout of an additional 100,000 bikes is awaiting ECC approval, with a three-month delivery target, using approximately 130,000 CKD kits available domestically or in transit. Distribution will be structured in 200 batches of 500 units each, with subsidies paid as a fixed Rs 80,000 per bike directly to pre-qualified OEMs — removing the previous buyer reimbursement step.

📌 Fuel Savings Case

Officials estimate the programme will save 8.6 million litres of petrol short-term — valued at around USD 8 million — with five-year savings projected at USD 222 million. Against a weekly oil import bill now at $800 million following the Hormuz disruption, even modest substitution from petrol to electric carries meaningful foreign exchange implications.

 

 

Key Changes from Phase 1: Allocation, Subsidy and Verification

Three process improvements address the main friction points identified in Phase 1. First, the balloting-based allocation system has been replaced with first-come, first-served, with Phase 1 waitlisted applicants prioritised based on application timestamps. This removes the perceived arbitrariness of a draw-based system and rewards those who engaged earliest with the programme.

Second, the subsidy mechanics have been revised. Buyers now pay the net price after the subsidy is deducted upfront, rather than paying full price and waiting for reimbursement. EDB will transfer the Rs 80,000 subsidy to OEMs via the State Bank upon verified delivery and registration — accelerating OEM cash flow and removing a buyer pain point. Third, the mandatory 100% third-party verification system — estimated at over Rs 500 million in Phase 1 — has been replaced by a risk-based model using biometric checks, photographic evidence and digital portal validation, reducing programme overhead without eliminating accountability.

🟢 Government Employee Scheme

Federal employees in BS-16 and below now have a dedicated pathway: Rs 10,000 down payment for bikes and Rs 100,000 for rickshaws, with the remaining amount recovered through interest-free payroll deductions over 6 to 18 months. This mirrors the parallel electric bike scheme for AGPR-payroll employees and extends accessible EV ownership to a large segment of the civil service.

 

 

Student Reward Scheme and Programme Scope

Six hundred free electric bikes will be awarded to top-performing students who secured first, second and third positions in the 2025 HSSC examinations across all 26 Boards of Intermediate and Secondary Education — estimated at Rs 150 million based on an average unit cost of Rs 250,000. Beyond merit recognition, the scheme introduces electric mobility to a young, digitally connected demographic likely to influence household purchasing decisions.

PAVE Phase 2 — Key Programme Parameters

Feature Detail
ECC Budget (FY26) Rs 9 billion approved under NEV Policy 2025–30
Phase 2 Target 76,000 bikes + 2,170 rickshaws/loaders
Fast-Track Add-On 100,000 bikes within 3 months (ECC approval pending)
Subsidy — Bikes Rs 80,000 per bike, paid direct to pre-qualified OEMs
Down Payment (Govt Staff BS-16 and below) Rs 10,000 for bikes; Rs 100,000 for rickshaws
Repayment — Govt Staff Interest-free payroll deductions over 6–18 months
Allocation Method First-come, first-served; Phase 1 waitlist prioritised
Free Bikes (Students) 600 bikes to HSSC top performers across 26 boards
Projected Petrol Saving 8.6 million litres short-term; USD 222 million over 5 years
Verification System Risk-based model (biometric, photographic, digital portal)

 

 

DISCLAIMER

All information in this article is based on publicly available data and official statements. This content is intended for general informational purposes only.

Zayn

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