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.
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SH&SFD Circular No. 04
Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders
September 29, 2025
562
The Presidents / CEOs
All Banks
Dear Sir/Madam,
Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders
The Federal Government has introduced a ‘Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders’ with a view to promote energy efficiency and transition to green technologies in automotive sector. The key features of the scheme are given below:
Sr. No
Parameter
Criteria
1
Scheme size
The scheme shall cover financing of approximately 116,000 e-bikes and 3,170 e-rickshaws/loaders during FY 2025-26 Out of this, following quota will be observed: Minimum of 25% of the total number of e-bikes for females Maximum of 10% of total e-bikes for persons intending to use e-bikes for business purposes such as courier or delivery services Maximum of 30% of rickshaws/loaders for fleet operators The scheme will be implemented in two phases. In the first phase, 40,000 e-bikes and 1,000 e-rickshaw/loaders will be distributed while remaining 76000 e-bikes and 2,171 e-rickshaws/loaders will be distributed in the second phase
2
Eligibility to apply
All citizens of Pakistan including GB & AJK subject to the age restrictions In case of rickshaws/loaders, fleet operators will also be eligible to apply in addition to common citizens Eligibility criteria for fleet operators will be determined by the Steering Committee
3
Age limits
To be eligible for the scheme, a citizen of Pakistan shall satisfy following age criteria at the time of submission of application: In case of e-bikes: Min 18 years; max 65 years In case of rickshaws/loaders: Min 21 years; max 65 years
4
Type of Financing
Conventional and Islamic finance
5
Loan Size
Maximum cap shall be as under: PKR 200,000/- for two-wheeler PKR 880,000/- for three-wheeler Borrower shall pay any amount above the Capital Subsidy as part of upfront equity payment while complying with debt-to-equity ratio
6
Capital Subsidy
Up to PKR 50,000 per two-wheeler, subject to Parameter “Debt:Equity ratio” Up to PKR 200,000 per three-wheeler, subject to Parameter “Debt:Equity ratio”
7
Debt: Equity Ratio
80:20 (down payment of 20%) Equity portion will encompass both capital subsidy and borrower’s share. As a general principle, first, fixed capital subsidy will be applied and any remaining amount will then be paid by borrower For the avoidance of doubt, if the equity portion of 20% is fully covered by capital subsidy, then borrower will not pay any amount
8
Loan Tenor
Max 2 years for e-bikes Max 3 years for rickshaws/loaders
9
Bank’s Pricing
6-month KIBOR +2.75%
10
End User Rate
0% (Full mark-up subsidy by Federal Government)
11
EMI
EMI comprising principal + insurance component only
12
Lending Platform
Digital with minimal human interaction Banks will integrate with digital platform for sharing information etc
13
Original Equipment Manufacturers (OEMs)/Vendors & Shortlisted Vehicle Models
As shortlisted by Engineering Development Board (EDB) OEMs shall be responsible for timely delivery of vehicles to borrowers and for regular after sales service
14
Debt Burden Ratio
As per SBP Prudential Regulations
15
Credit Scorecard
As per respective bank’s risk appetite & credit policy
16
Income Estimation
Through salary slip or bank statement(s) or proxy methods
17
Charges on early settlement
Nil
18
Loan Processing Charges
Nil
19
Late Payment Charges
As per Schedule of Charges (APSC) of individual banks
20
Repossession charges
APSC to be borne by borrower
21
Registration charges
To be borne by borrower
22
PMD and other checks
Federal Government to arrange for PMD (Pakistan MNP [mobile number portability] Database) Check/NADRA Verisys check at their cost
23
Insurance Payment
As per rates agreed with insurance companies (first year to be taken in advance) by individual banks, with yearly insurance cost in subsequent year(s) to be pro-rated in EMI. Rates to be negotiated with the insurance companies in coordination with Ministry of Industries & Production (MoI&P)
24
Credit Loss Guarantee (CLG)
20% Portfolio Guarantee on First Loss Basis
25
CLG Claim Stage
180 days from the date the installment was due and not paid by the customer
26
Mandatory Documentation
Valid CNIC, Digital Undertaking for Driving License
The banks are advised to gear up their systems and their integration with the Centralized portal of the Scheme hosted by MOIP/EDB for successful implementation of the scheme.
Yours sincerely,
Fatima Javaid Senior Joint Director
Home — Circulars — SH&SFD Circular No. 04
Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders
September 29, 2025