The Economic Coordination Committee (ECC) of the federal cabinet on Tuesday approved a subsidy program for electric vehicles, as well as a Rs. 30 billion technical supplementary grant to clear pending reimbursement claims under the Telegraphic Transfer Charges (TTC) Incentive Scheme for fiscal year 2024-25.
Chaired virtually by Finance Minister Muhammad Aurangzeb, the meeting also granted in-principle approval to a Rs. 2 billion bailout package for Islamabad’s Quaid-i-Azam University, subject to the submission of a financial sustainability plan.
In a statement, the Finance Division said the ECC had approved a subsidy scheme to promote the use of electric bikes and rickshaws/loaders with an aim to improve the accessibility of electric mobility. The initiative calls for the distribution of 116,000 electric bikes and 3,170 electric rickshaws/loaders in two phases, with the first phase comprising 40,000 bikes and 1,000 rickshaws/loaders slated to be shortly launched by Prime Minister Shehbaz Sharif. Top-performing students at government colleges would also receive free electric bikes under the scheme. The subsidy, financed through a Rs. 9 billion budgetary allocation for fiscal year 2025-26, was submitted by the Ministry of Industries and Production.
The ECC also approved a Rs. 30 billion technical supplementary grant requested by the Finance Division to partially clear outstanding TTC incentive claims totaling Rs. 58.26 billion to continue encouraging overseas Pakistanis to use official channels for remittances. The ECC directed the Finance Division to coordinate with the State Bank of Pakistan (SBP) to finalize payment modalities and conduct a comprehensive assessment of the remittance initiative. Final recommendations, incorporating stakeholder input, are expected by mid-September.