The Access to Finance Steering Committee has approved 17,118 applications under the Electric Vehicle Promotion Program. Federal Finance Minister Muhammad Aurangzeb has also directed that the disbursement of the approved loans be accelerated.

The fourth meeting of the Access to Finance Program Steering Committee was held under the chairmanship of Finance Minister Muhammad Aurangzeb. According to the Ministry of Finance, 1,860 electric bikes have already been provided under the program. Loans worth more than Rs2.58 billion have been approved for electric vehicles, while more than Rs800 million has also been disbursed.

The meeting was informed that around 100 of the 508 financial literacy programs planned across the country have already been held. The Finance Minister stressed the need to assess their results and impact and said that access to the formal financial system should be made easier for businesses. He said increasing financing for the private sector is essential for sustainable economic growth.

The Finance Minister said that approved financing must be converted into actual lending, investment and economic activity.

Govt approves new five-year auto policy

Prime Minister Shehbaz Sharif has approved the new five-year auto policy, but before the policy can be implemented, it will have to go through the approval stages of the IMF and the federal cabinet.

According to the policy draft, the new auto policy is proposed to be implemented from 2026 to 2031, with proposals for a phased reduction in duties on the import of hybrid vehicles.

According to the document, a 20% reduction in taxes over five years has been proposed on the import of hybrid vehicles above 1,800cc.

Preparations are underway to reduce the duty on hybrid vehicles above 1,801cc from 50% to 30%.

Similarly, a proposal has been made to reduce the duty on 1,501cc to 1,800cc hybrid vehicles from 50% to 30%.

A proposal has also been made to reduce the duty on 851cc to 1,000cc and up to 800cc hybrid vehicles from 50% to 30%.

The policy draft proposes reducing the duty on hybrid trucks from 30% to 15%, while the duty on hybrid light commercial vehicles is proposed to be reduced from 60% to 30%.

Similarly, preparations are underway to reduce the duty on hybrid buses from 30% to 15%.

Also Read: Govt approves new five-year auto policy