Islamabad: The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved the rollout of a nationwide electric vehicle subsidy, including the distribution of electric bikes to students and electric rickshaws and loaders for broader public use. The meeting, chaired virtually by Federal Minister for Finance and Revenue Muhammad Aurangzeb, also sanctioned key fiscal measures, including a PKR 30 billion technical supplementary grant (TSG) for the settlement of reimbursement claims under a government remittance scheme.
Under the approved electric vehicle initiative, 116,000 electric bikes and 3,170 electric rickshaws/loaders will be introduced in two phases. In the first phase—set to be formally launched by the prime minister—40,000 e-bikes and 1,000 electric rickshaws/loaders will be rolled out. A budgetary allocation of PKR 9 billion has already been earmarked for the 2025–26 fiscal year to support the scheme.
The initiative includes a provision for awarding free electric bikes to high-achieving students enrolled in government colleges, as part of a broader push to promote sustainable mobility and reduce fuel dependence. The subsidy aims to encourage adoption of energy-efficient vehicles while offering affordable transportation alternatives to the public.
In another major decision, the ECC approved a PKR 30 billion TSG to settle outstanding dues from the previous fiscal year under the Telegraphic Transfer Charges Incentive Scheme. The scheme was designed to incentivize overseas Pakistanis to use formal banking channels for remittances. The total pending claims under this initiative amount to PKR 58.26 billion.
The committee directed the Finance Division to work with the State Bank of Pakistan (SBP) to determine a suitable payment mechanism for the grant. It also called for a detailed review of the Pakistan Remittance Initiative—evaluating its financial impact, opportunity costs, and stakeholder feedback. Final recommendations are expected by mid-September, following a full analysis by the end of August.
Additionally, the ECC approved, in principle, a PKr 2 billion bailout grant for Quaid-e-Azam University (QAU). However, the release of funds is contingent upon the university, in coordination with the Higher Education Commission (HEC), submitting a concrete financial sustainability plan to reduce reliance on future government support.
Other agenda items discussed included energy policy development and administrative funding needs across several federal institutions. The meeting was attended by key cabinet members, including the Ministers for Power, Petroleum, and National Food Security, along with senior officials from relevant ministries and divisions.
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