PM Electric Bike Scheme 2026 PAVE Phase 2: Everything You Need to Know

The federal government is preparing to officially launch Phase 2 of the Prime Minister's Electric Bike Scheme 2026, part of the PAVE (Pakistan Accelerated Vehicle Electrification) programe approved by the Economic Coordination Committee (ECC) in May 2026.

Backed by a Rs. 9 billion package, the new phase introduces a simpler first-come-first-served application process and direct subsidy transfers. The aim is to fix the problems that slowed down Phase 1 and get electric bikes and rickshaws into people's hands faster.

What Is the PAVE Scheme?

PAVE, or Pakistan Accelerated Vehicle Electrification, is the federal government's flagship push to speed up electric vehicle adoption across the country. Running under the National Electric Vehicle Policy 2025–30, it offers subsidized electric two-wheelers, three-wheelers, rickshaws, and loaders to ordinary citizens, students, women, and small businesses.

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Phase 1 had a target of 41,000 vehicles but fell well short, distributing only 5,409 units amid banking bottlenecks. Phase 2 has been redesigned from scratch to deliver better results.

Key Features at a Glance

·        Direct subsidy transfer: The subsidy is deducted upfront from the purchase price, so there's no waiting after delivery.

·        First-come, first-served: The ballot lottery is gone. Apply early and approvals are processed in order.

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·        0% interest financing: Easy 2–3 year instalment plans through 17 partner banks and NBFCs.

·        Three vehicle categories: Electric bikes, rickshaws, and three-wheeler loaders are all included.

·        Nationwide coverage: Open to all Pakistanis, including residents of AJK and Gilgit-Baltistan.

Phase 1 vs Phase 2 — What Changed?

Feature	Phase 1	Phase 2
Application method	Computerized balloting	First-come, first-served
Vehicle target	41,000 vehicles	119,170 vehicles
Subsidy mechanism	Post-purchase reimbursement	Upfront price deduction
Budget	Limited pilot budget	Rs. 9 billion
Bank processing rate	~22% of applications	Streamlined — all 17 banks active

How Much Will You Save?

The subsidy depends on the vehicle type. In Phase 2, the amount is deducted directly from the vehicle price at purchase, so buyers pay only the net amount. The Engineering Development Board (EDB) then transfers the subsidy to the manufacturer (OEM) through the State Bank of Pakistan once delivery is verified.

·        Rs. 80,000 — Electric scooter/bike

·        Rs. 400,000 — Electric rickshaw

·        Rs. 400,000 — Electric loader

On top of the upfront subsidy, buyers can use 0% interest instalment plans spread over 2–3 years through participating banks, which makes even higher-end electric bikes genuinely affordable.

Phase 2 Vehicle Targets

The full PAVE programe targets 119,170 vehicles. After the pilot allocation of 41,000 units, the remaining Phase 2 targets are:

·        76,000 electric bikes — the largest allocation

·        2,170 electric rickshaws and loaders

Quantities are fixed. Once the allocated units for a category run out, applications for that vehicle type will close, which is why applying early is strongly recommended.

Who Can Apply?

·        Pakistani citizens aged 18–65 with a valid CNIC

·        Students and youth looking for affordable commuting

·        Women — the scheme is specifically designed to improve women's mobility

·        SECP-registered NBFCs and fleet operators

·        Residents of AJK and Gilgit-Baltistan

Important: Anyone who has received an electric vehicle through any government scheme, federal or provincial, is not eligible for PAVE Phase 2. Only one subsidy is allowed per person.

How to Apply — Step by Step

1.     Register on the official PAVE portal. Visit pave.gov.pk and create an account. Enter your details exactly as they appear on your CNIC, including province, district, tehsil, and nearest city.

2.     Choose an approved vehicle. Go to the PAVE Vehicles Directory pave.gov.pk and pick a subsidized model from the approved OEM list.

3.     Submit pay order/down payment. Make the required down payment or pay order out to the Original Equipment Manufacturer (OEM) of your chosen vehicle.

4.     Approval and subsidy processing. Once your application is verified, the State Bank of Pakistan processes the subsidy directly to the OEM. You pay only the net, post-subsidy price.

5.     Delivery and registration. Collect your vehicle and complete registration. The subsidy transfer to the OEM is triggered once delivery is confirmed.

Why Phase 2 Matters for Pakistan

Pakistan spends billions of dollars importing petroleum every year. Every petrol bike replaced by an electric one directly reduces that import bill, cuts urban air pollution, and puts more money back in people's pockets. For daily commuters, the running cost of an electric bike is a fraction of a petrol bike's.

The PAVE program is part of the broader National Electric Vehicle Policy 2025–30, which aims to electrify 30% of new vehicle sales by 2030. Phase 2 is a major step toward that goal — and for individuals, it offers a rare chance to buy a quality electric bike at a heavily subsidized price with interest-free financing.

No official closing date has been announced yet. Since applications are processed on a strict first-come, first-served basis and quantities are fixed, apply as early as possible. Check pave.gov.pk for the latest updates or call the helpline at 1048.