The federal government has launched a major subsidy scheme to promote electric vehicles (EVs) across the country, with Prime Minister Shehbaz Sharif approving financial incentives for electric bikes, rickshaws, loaders and cars.

According to a notification issued by the Ministry of Industries and Production, subsidies are being rolled out in phases, starting with support for 41,000 electric vehicles.

These include 40,000 electric motorbikes, and 1,000 electric rickshaws, and loaders.

Under the first phase, buyers of electric bikes will receive a subsidy of up to Rs80,000. The amount will be transferred directly to the bank accounts of eligible beneficiaries.

The government has also arranged easy instalment plans for electric bikes and rickshaws to make low-cost and environment-friendly transport accessible to the public.

Officials clarified that subsidies will be available only for registered electric vehicles, and unregistered vehicles will not be eligible.

In the second phase, subsidies worth Rs8.95 billion will be provided for an additional 78,170 electric vehicles. The transfer of subsidy amounts to verified applicants has already begun.

The government has decided to allocate more than Rs100 billion in subsidies for the promotion of electric vehicles by 2030.

Officials said the initiative aims to encourage affordable, clean and sustainable transport while reducing dependence on fossil fuels.