Cabinet opposes e-bike subsidy

A majority of cabinet members have opposed the idea of offering subsidy on e-bikes, believing that it will promote rent-seeking and will also be unsustainable. Sources told The Express Tribune that the Industries and Production Division informed the cabinet, in a recent meeting, that initially it was also against extending any subsidy. However, after discussion with industry representatives, it appeared to be the only viable option, in the short run, to jump-start production of e-bikes. A cabinet member pointed out that at present most of the fuel-based motorcycles were being purchased on monthly installments through informal financing and it could be replicated in the case of e-bikes as well since any increase in installments, due to higher prices of e-bikes, would be offset by fuel savings. Another cabinet member suggested that the possibility of using electric conversion kits, which could be manufactured locally, should also be explored. The cabinet reached a general consensus that various financing models should be discussed in detail in the Economic Coordination Committee (ECC) before being placed in a cabinet huddle.