Regulatory Alerts2025-09-29 | SH&SFD Circular No. 04 of 2025Added · Updated
Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders
The Federal Government establishes a cost-sharing scheme to finance approximately 116,000 electric bikes and 3,170 electric rickshaws or loaders during fiscal year 2025-26, with specific quotas for female borrowers, business users, and fleet operators. Banks are required to offer loans with a maximum cap of PKR 200,000 for two-wheelers and PKR 880,000 for three-wheelers, featuring a zero percent end-user rate, a maximum tenor of three years, and an 80:20 debt-to-equity ratio where capital subsidies cover up to PKR 50,000 and PKR 200,000 respectively. The scheme mandates a 20% portfolio guarantee on a first-loss basis for banks, requires integration with a centralized digital platform, and sets eligibility criteria including age limits of 18 to 65 years for e-bikes and 21 to 65 years for e-rickshaws.