Banks approved 4,075 of the applications received, or about 9 percent, due to which the government seems to be failing to achieve the target of distributing 116,000 electric bikes in the current fiscal year.
The Economic Coordination Committee has approved major amendments to the Pakistan Accelerated Vehicle Electrification Program. The program’s objective was to promote the use of electric bikes, rickshaws, and loaders, for which subsidies are being provided.
According to statistics, only 5,409 electric bikes and rickshaws have been distributed so far, which is a mere 4.5 percent of the annual target. Of the 44,689 applications sent to banks, only 22 percent were processed, while the approval rate was extremely low.
On the other hand, better results were seen under the self-finance scheme, where almost all applicants were provided with bikes, and the majority also received subsidies. Approval has been given to increase the number of electric bikes for working women and female students.
The government has decided that in the second phase, the self-finance scheme will be further promoted by reducing the role of banks. Under the new facility, users will be able to pay by deducting the subsidy from the price of the bike, which will save them from having to pay the full amount in advance.
A special scheme has also been introduced for government employees (grade 16 and below), under which they will be able to get an electric bike by paying only Rs 10,000 in advance, while the government will pay the rest in instalments. In addition, the government has also announced a scheme for students, under which 600 electric bikes will be distributed among prominent position holders of education boards across the country.
According to officials, a plan has also been made to introduce one lakh electric bikes in three months under the new scheme, which will enable fuel savings and a reduction in foreign exchange. The program is being funded under the levy imposed for the adoption of new energy vehicles, for which Rs 9 billion has been allocated in the current fiscal year.
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