The Punjab government announced a Rs 57 billion electric vehicle subsidy package on Friday, offering direct purchase incentives ranging from Rs 20,000 for electric motorcycles to Rs 500,000 for commercial EVs — a policy that arrived with powerful timing as Pakistan’s worst-ever fuel price crisis pushes petrol to Rs 378 per litre and diesel to Rs 520.35 per litre, making the lifetime running cost savings of EVs more compelling than at any point in Pakistan’s history.
The announcement, made under CM Maryam Nawaz’s transport transformation agenda, covers the full vehicle spectrum: bikes, rickshaws, cars, buses, and commercial trucks.
The Punjab government’s Rs 57 billion package covers electric bikes, rickshaws, cars, buses, and commercial vehicles. Proposed incentives range from Rs 20,000 for electric bikes to Rs 500,000 for commercial EVs.
| Vehicle Category | Subsidy Amount | Target Beneficiary |
|---|---|---|
| Electric motorcycles | Up to Rs 80,000 | Daily commuters, students, delivery riders |
| Electric rickshaws / loaders | Up to Rs 400,000 | Small business operators, drivers |
| Electric cars | Support via Meri Gari Scheme | Salaried, self-employed, ride-hailing |
| Commercial EVs (buses/trucks) | Up to Rs 500,000 | Freight operators, public transport |
Sources: Punjab Transport Department, TechJuice, Engineering Development Board, April 2026.
The Punjab subsidy is layered on top of the federal PAVE (Pakistan Accelerated Vehicle Electrification) scheme. Under the federal PAVE programme, a total subsidy of Rs 100 billion will be provided over five years until 2030 for electric bikes, rickshaws, loaders, cars, buses, and trucks. For the current fiscal year, Prime Minister Shehbaz Sharif has allocated Rs 9 billion, including Rs 80,000 per electric motorcycle and Rs 400,000 per electric rickshaw.
The Punjab government plans to install 1,200 Level-One charging points in Lahore, along with 400 battery swapping stations and 300 fast-charging facilities. Investors setting up charging stations will benefit from capital subsidies and tax concessions. Even petrol pumps converting into EV charging hubs may receive exemptions from property taxes. The plan also includes incentives for battery recycling plants, establishment of battery testing laboratories, and the gradual electrification of government and public transport fleets.
A senior official from the provincial transport department stated: “Through this initiative, we aim to make electric mobility accessible for everyone, while reducing the environmental impact of traditional vehicles.”
Hamad Ali Mansoor, CEO of the Engineering Development Board, detailed that the first 20,000 electric bikes under the federal scheme will be provided with zero interest. Electric motorcycles under the scheme are priced Rs 50,000 to Rs 60,000 less than their petrol-powered counterparts, making them an affordable alternative for daily commuters and small business owners.
The timing of Punjab’s EV subsidy announcement — days after Pakistan’s worst-ever fuel price shock — makes the economic calculus for EV adoption dramatically different from six weeks ago. At diesel Rs 520.35 per litre, a rickshaw driver burning 8 litres daily spends Rs 4,163 per day on fuel. An electric rickshaw equivalent charges at Rs 39.7 per kWh. The Punjab package’s Rs 400,000 subsidy on electric rickshaws wipes out virtually the entire price premium of an EV rickshaw over a conventional one — turning a “green choice” into a straightforward cash decision.
Electric motorcycles under the scheme are expected to save consumers up to Rs 8,000 per month compared to traditional gasoline-powered vehicles. Beyond fuel savings, the scheme fosters green job creation, supporting local manufacturing, charging infrastructure, and after-sales services.
For electric motorcycles and rickshaws under the federal PAVE scheme, citizens apply at pave.gov.pk. For the Punjab E-Taxi scheme (1,100 electric taxis, 30% quota for women), apply via the Punjab Transport Department portal. For the Meri Gari Scheme (subsidised car financing with 6–8% markup vs 20%+ commercial rates), apply through Punjab’s vehicle finance portal. For motorcyclists seeking the existing Rs 100/litre petrol subsidy: Dial 1000, SMS CNIC to 9771, or register at mkb.punjab.gov.pk.
Punjab has also waived all motorcycle registration and transfer fees for the current crisis period — removing the biggest practical barrier to qualifying for the subsidy (you must be the registered owner).
The Pakistan Accelerated Vehicle Electrification (PAVE) scheme aims to accelerate the country’s transition towards clean, affordable, and sustainable transportation, reduce reliance on fossil fuels, and support the growth of domestic electric vehicle manufacturing. Under the scheme, a total subsidy of Rs 100.36 billion will be provided over five years until 2030 for electric bikes, rickshaws, loaders, cars, buses, and trucks.
For Pakistan, the fuel crisis of 2026 has crystallised what years of EV policy papers could not: every litre of imported oil directly connects to Strait of Hormuz geopolitics, foreign exchange reserves, and inflation. Punjab’s Rs 57 billion commitment to vehicle electrification — funded from the province’s Rs 100 billion NFC share of the Rs 200 billion fuel crisis relief package — is both an immediate response and a structural bet on reducing Pakistan’s 80% energy import dependency over the next decade.