Pakistan approves interest-free loans for electric bikes to boost local manufacturing

Pakistan approves interest-free loans for electric bikes to boost local manufacturing

On Thursday, Pakistan’s Economic Coordination Committee (ECC) approved interest-free loans for electric bikes and electric rickshaws. The move is aimed at encouraging the manufacturing of electric vehicles in the country.

The meeting was chaired by Federal Minister for Finance and Revenue, Senator Mohammad Ishaq Dar, and was attended by various federal ministers and senior officials.

The Ministry of Industries and Production presented a summary regarding the financing facility for electric bikes and e-rickshaws. The ECC approved Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) model for e-bikes and e-rickshaws. Under the scheme, clean loans of up to PKR 0.5 million will be given at 0% markup rate for repayment in three years. This facility will be available for up to 15,000 e-bikes/rickshaws in the current financial year.

The ECC further directed the Ministry of Industries and Production to work out the modalities of the scheme in coordination with PMYB&ALS.

In addition, the ECC approved the declaration of Customs Station Angoor Adda as an authorized export land route to Afghanistan and through Afghanistan to Central Asian Republics.

The ECC also approved an increase in the Government of Pakistan (GoP) guarantee related to USD-denominated loans of Pakistan International Airlines Corporation Limited (PIACL) to the tune of PKR 15.61 billion.

Moreover, the ECC considered a summary on the price of sugar during the month of Ramazan and directed PSMA Punjab Zone to provide 20,000 metric tonnes of sugar at a retail price of PKR 95 per kilogram during the month of Ramzan for sale to the general public through the Government of Punjab at the district level. The ECC also directed to make arrangements with other provincial PSMAs on a similar pattern for the provision of sugar in other provinces/areas.

Lastly, the ECC approved technical supplementary grants/supplementary grants in favor of the Ministry of Housing and Works, the Ministry of National Health Services, Regulations and Coordination, and the Ministry of Foreign Affairs for various development projects and liabilities payment.

The decision to approve interest-free loans for electric bikes and e-rickshaws is expected to have a positive impact on the environment and create job opportunities in the country.

Price, specs of United Revolt electric bike in Pakistan