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The government plans to introduce a credit guarantee scheme for electric vehicles (EVs) through the State Bank of Pakistan (SBP), with an interest rate fixed at KIBOR.
Rs4 billion package will cover 42,000 EVs—40,000 two-wheelers and 2,000 three-wheelers. Of this, 25% will be reserved for women, while the remaining 75% will be available for general use, according to a report by The Express Tribune on Wednesday.
Banks will charge KIBOR + 3% interest on loans up to Rs1 million, with the same rate offered as a subsidy to customers. These proposals were reviewed by a steering committee meeting on Tuesday.
The Secretary of the Ministry of Industries and Production (MoI&P) suggested that the SBP be consulted for announcing the financing scheme and proposed that EV manufacturers manage the loans directly. He also recommended setting the interest rate equal to KIBOR to further promote the sector.
A representative from MS Auto, an electric motorcycle manufacturer, pointed out that the 18% sales tax on localised components at the sales stage increases costs. In response, the Secretary of MoI&P stated that EV manufacturers could claim tax returns on local production, and the Federal Board of Revenue (FBR) could devise a mechanism to facilitate this process.
