In a significant step toward modernizing public transportation and reducing environmental pollution, the Punjab government is set to officially launch its e-taxi scheme in August 2025. Spearheaded by the Punjab Transport Department, this initiative not only aims to introduce eco-friendly transport options but also encourages women’s participation in the mobility sector.
With all groundwork finalized and infrastructure nearly ready, the government is preparing to deploy 1,100 electric taxis under the pilot phase of the scheme.
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Key Highlights of the Punjab E-Taxi Scheme
- Launch Date: August 2025
- Number of Vehicles (Pilot Phase): 1,100 Electric Taxis
- Special Allocation for Women: 30 e-taxis reserved exclusively for female drivers
- Application Method: Through a dedicated online portal being developed by the Punjab Information Technology Board (PITB)
- Vehicles Provided By: 9 shortlisted companies
- Financing: Easy, interest-free installments with government covering token tax, registration fees, and markup
- Distribution Model:
- 1,000 e-taxis for fleet owners (minimum 10 vehicles per owner)
- 100 e-taxis for individual drivers and ride-hailing partners
Benefits of the E-Taxi Scheme
1. Eco-Friendly and Sustainable Transport
This scheme is a bold move toward combating air pollution and reducing Punjab’s carbon footprint. Electric taxis offer zero tailpipe emissions, significantly improving urban air quality compared to conventional petrol or diesel-based vehicles.
2. Financial Relief for Drivers and Operators
To ensure affordability and attract participation, the government will bear the interest cost (markup), registration charges, and token taxes. This reduces the initial financial burden on taxi drivers and fleet owners, encouraging more people to adopt electric vehicles.
3. Empowering Women
By reserving 30 electric taxis specifically for women, the scheme promotes gender inclusivity and economic empowerment. This initiative opens new job avenues for women in the public transport sector, which has traditionally been male-dominated.
4. Boosting the Local Economy
The launch of e-taxis is expected to generate employment opportunities across various sectors including automobile distribution, maintenance, EV charging infrastructure, and ride-hailing services. Fleet owners investing in 10 or more vehicles will also contribute to the growth of small transport businesses.
5. Affordable Public Transport Option
Once rolled out at scale, e-taxis are likely to offer cheaper rides due to lower operational costs. Electric vehicles have significantly lower fuel and maintenance costs, which could translate into affordable fares for passengers.
Cost Structure and Financial Model
The e-taxis will be made available on zero-interest installment plans, making them financially accessible for fleet operators and independent drivers. The government’s support in covering registration and token fees ensures the vehicles hit the road with minimal upfront costs.
Each fleet owner will be required to purchase a minimum of 10 electric taxis, ensuring economies of scale and efficient fleet management. The financial model has been crafted to ensure long-term sustainability and scalability, with revenue generation expected through daily operations, partnerships with ride-hailing platforms, and possible government incentives.
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Expected Impact of the E-Taxi Scheme in Punjab
1. Cleaner Cities
By gradually phasing out fossil-fuel-based taxis, Punjab can significantly reduce urban noise and air pollution, aligning with Pakistan’s broader environmental goals.
2. Job Creation
The scheme is likely to create thousands of jobs in vehicle servicing, fleet management, driving, and administration. It also encourages entrepreneurship among small transport operators.
3. Digital Transformation
With the PITB developing an online application portal, the initiative also promotes digital governance and transparency in public transport schemes.
4. Roadmap for EV Adoption in Pakistan
This project sets the stage for widespread electric vehicle adoption across Pakistan. If successful, it could serve as a blueprint for similar initiatives in other provinces.
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What’s Next?
The formal launch of the scheme is expected within the next two weeks, according to Punjab Transport Minister Bilal Akbar Khan. After the pilot phase, the government may scale the program, introducing thousands more e-taxis and potentially expanding into inter-city routes, rural districts, and even school and cargo transportation using electric vehicles.
Final Thoughts
Punjab’s e-taxi scheme represents a transformational leap in clean mobility, blending innovation, sustainability, and inclusivity. With financial backing from the government and a robust digital infrastructure in the works, the project is poised to bring long-lasting change to how people move within the province.