ISLAMABAD: After imposing up to three per cent tax on gross sale value of conventional local and imported vehicles, the government approved a five-year subsidy scheme on Tuesday for the rollout of 116,000 electric bikes and 3,170 electric rickshaws/loaders, with an estimated cost of around Rs100bn.

The scheme is part of efforts to encourage the adoption of electric vehicles (EVs) in Pakistan, reduce oil imports, and foster environmental sustainability. Prime Minister Shehbaz Sharif is expected to launch the initiative on Aug 14 formally.

The decision was made at a meeting of the Economic Coordination Committee (ECC) of the Cabinet, which also discussed the New Electric Vehicle Adoption Levy (NEVAL). The levy is expected to generate Rs122bn, which will not only fund the subsidy scheme but also meet a key condition of the $1.4bn Resilience and Sustainability Facility (RSF) from the International Monetary Fund (IMF).

Finance Minister Muhammad Aurangzeb, who presided over the meeting remotely, was informed that a Rs9bn subsidy had already been........

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