Govt to Launch New EV Policy on August 14 With Rs. 100 Billion IMF-Backed Subsidy

The federal government will launch a new five-year electric vehicle (EV) policy on August 14, backed by the International Monetary Fund (IMF), with a focus on promoting electric bikes and rickshaws, sources in the Ministry of Industries and Production revealed. For the current fiscal year, the IMF has allocated Rs. 9 billion from a total of Rs. 100 billion subsidy package to support the transition to energy-efficient transport. Under the policy, 116,000 electric bikes will be distributed over two years from the start of implementation. Each electric bike and rickshaw will receive a subsidy of approximately Rs. 50,000. The new EV policy, prepared in consultation with the IMF, will run until 2030. It aims to overcome the shortcomings of the previous EV policy, which fell significantly short of its targets. Only 50,000 two- and three-wheelers were introduced into the market against a goal of 500,000. Just 200 electric buses entered service against a target of 1,000. For four-wheelers and trucks, only 3,000 and 1,000 units, respectively, made it to the market against a target of 100,000. Future subsidy allocations under the new policy are projected at Rs. 19 billion in FY27, Rs. 24.16 billion in FY28, Rs. 26.62 billion in FY29, and Rs. 22.64 billion in FY30. Prime Minister Shehbaz Sharif is expected to formally announce the launch of the new policy and the rollout of electric bikes on Independence Day, August 14.