ISLAMABAD: On Thursday, the Economic Coordination Committee (ECC) approved a loan scheme to support the lower and middle class while providing e-bikes/e-rickshaws on zero percent markup with a repayment plan of three years.
Federal Minister for Finance Muhammad Ishaq Dar approved the scheme while presiding over the ECC of the Cabinet meeting.
At the meeting, officials from the Ministry of Industries and Production submitted a summary related to a financing facility for electric bikes (E-bikes) and E-Rickshaws.
“To meet the quick demand for E-Bikes/Rickshaws in the country, the Economic Coordination Committee approved PM’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) model for E-Bikes/E-Rickshaws.
As per the scheme, a clean loan of up to Rs0.5 million will be offered under Tier-I (T1) of PMYB&ALS at a markup rate of 0 % for repayment in three years. The statement further maintained that the facility would be available for up to 15,000 Electric-Bikes/Rickshaws for the current fiscal year.
According to the scheme, a 24-monthly instalment plan has also been under which the customer would be paying Rs4,310 per month, comprising the principal amount of Rs2,917, an interest payment of Rs1,109 and insurance payment of Rs284 (2percent).
Govt Introduce E-Bikes to Save Energy
The ministry expects the production and sale of 15,000 electric bikes during the ongoing FY2022-23, whereas 60,000 and 100,000 electric bikes are planned to be produced in 2024-24, and 2024-25, respectively, to reach the total production of 175,000 electric bikes in three years.
The electric bikes would be provided to students with salaried parents, with a 20 percent quota for female students/employees, 1 percent quota for transgenders, salaried/self-employed individuals with NTN and bank account, private sector, government employees, government/armed forces pensioners and Muazzam/Imam Masjid/Hafiz Quran, duly qualified from an institute recognized by Government of Pakistan.
As per the subsidized leasing model, Rs100,000 are met on sharing basis by the consumer and government while banks would provide the rest (Rs70,000) as a loan with a 50 percent credit guarantee by the government.
The scheme will likely start in Islamabad, Quetta, Peshawar, Lahore and Karachi in the first phase.
