ECC approves loan scheme model for e-bikes, e-rickshaws

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved the Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB & ALS) model for e-bikes and e-Rickshaws.

Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet.

E-Bikes and Rickshaws

First, the Ministry of Industries and Production submitted a summary regarding financing facility for electric bikes (e-bikes) and e-Rickshaws and presented details on viability, demand of electric bikes and incentive structure for potential users to make electric bikes affordable. 

Sources said that the federal government has allowed the import of Electric vehicles’ specific parts at the rate of 1% Customs Duty and 1% Sales tax to facilitate the manufacturing of Electric vehicles in the country. 

The Ministry of Climate Change in its EV policy 2019 aimed that by 2030, at least 50% of all the two and three wheeler sales in Pakistan would be electric. 

According to details, a comprehensive presentation on e-bikers was made to the federal government on December 28, 2022. It was informed that more than 26 million motorcycles are in the country and the annual market size of locally produced motorcycles is more than 2 million. 

Existing bikes on the road consume fuel of $3 billion annually and EDB has issued 22 manufacturing licenses to manufacturers of E-bikers and 7377 units of electric motorcycles were manufactured in 2021-22.

Sources said that the average cost of an e-bike with a lithium battery and specific standards is Rs 190,000. To help affordability, the government has introduced four financing schemes including cash purchase model, price sharing model, Easy Loan model and PM’ Youth Business and Agriculture loan scheme model for e-bikes/e-Rickshaws.  

Under the scheme, clean loans up to Rs. 0.5 million will be given under Tier-I (T1) of PMYB & ALS at 0% markup rate for repayment in three years.

To explore the three-year option, a meeting with representatives of SBP and other stakeholders was conducted that supported the scheme and appropriate amendments in the PM’ Youth Business and Agriculture loan scheme for E-Bikes and E-Rickshaws if deemed necessary.

Sources said that the all four above-mentioned schemes are different in terms of financial requirements and require financing either from the government or commercial banks. 

This facility will be available for up to 15000 E-Bikes/Rickshaws in the current financial year. The modalities of the scheme will be worked out by the Ministry of Industries & Production in coordination with PMYB & ALS.

Price of Sugar 

The Ministry of National Food Security and Research tabled a summary on the price of sugar during the month of Ramdan and briefed the meeting on the outcome of the Sugar Advisory Board’s meeting with Pakistan Sugar Mills Association (PSMA) regarding retail price of sugar. 

The ECC endorsed the decisions of the meeting, that PSMA Punjab Zone has agreed to provide 20,000 MT of sugar at retail price o f Rs. 95 per kg during the month of Ramdan ( till Eid-ul-Fitr) for sale to the general public through the Government of Punjab at district level. 

The ECC further directed to make arrangements with other provincial PSMAs on similar patterns for provision of sugar in other provinces/areas.    

The ECC considered and approved the summary of the Ministry of Commerce regarding declaration of Customs Station Angoor Adda as authorized export land route to Afghanistan and through Afghanistan to Central Asian Republics.  

The ECC considered a summary of Aviation Ministry and approved an increase in GoP guarantee related to USD denominated loans of PIACL to the tune of Rs15,607,394,711/- by enhancing the existing guarantee limit from Rs247.630 billion to Rs263.237 billion.

ECC also approved Rs261 million in Technical Supplementary Grants/Supplementary Grants in favour of Ministry of Housing and Works for execution of development scheme – Construction of railway underpass Jahanian, District Khanewal,  $0.5 million equivalent to Rs. 142.5 million Rupee Cover in favour of the Ministry of National Health Services , Regulations and Coordination, committed by SAARC Development Fund for a standard package for strengthening preventive and curative activities for mental health and condition of Covid-19 research activities,  Rs. 250 million in favour of the Ministry of Housing and Works for repair & maintenance of Supreme Court of Pakistan building, Judges residences, rest houses & sub- offices in various cities and Rs. 22 million in favour of the Ministry of Foreign Affairs for payment of liabilities of electricity.

 

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