Chief Minister Maryam Nawaz Sharif has officially ushered in a new era of sustainable urban mobility with the formal launch of the Punjab E-Taxi Scheme on February 26, 2026. This flagship initiative, a corner-stone of the “CM Punjab Transport Vision 2030,” marks Pakistan’s first large-scale transition toward an eco-friendly public transport ecosystem.
The program aims to modernize the province’s aging taxi fleet while providing significant economic relief to the public. By moving away from traditional combustion engines, the Punjab government is addressing the dual challenges of urban smog and the rising cost of fossil fuels.
Massive Rs 4 Billion Subsidy and Financial Model
The Punjab government has committed a substantial Rs 4 billion to ensure the e-taxi service is accessible to unemployed youth and existing drivers. Unlike traditional vehicle financing, this scheme is built on a heavily subsidized model designed to minimize the financial burden on the operator.
Key financial features include:
- Down Payment Subsidy: The government covers 50% of the down payment for male applicants and 60% for female applicants.
- Interest-Free Loans: Beneficiaries receive interest-free loans through the Bank of Punjab (BOP) with a 5-year repayment schedule.
- Markup Coverage: The provincial government will pay the full interest markup on behalf of the drivers.
- Operational Costs: Costs for vehicle registration, initial insurance, and fitness certifications are covered under the scheme.
Eligible applicants are expected to pay monthly installments of approximately Rs 60,000, while potential monthly earnings are estimated between Rs 150,000 and Rs 200,000.
Partnering with Dewan Motors: The Honri EV Lineup
To ensure vehicle reliability and local support, the Transport Department partnered with Dewan Motors to supply the fleet. The initial phase of 1,100 electric taxis features two primary models tailored for urban use:
- Honri VC20: A compact, efficient model offering a range of 200 kilometers per charge, ideal for short-radius city commuting.
- Honri VC30: An upgraded variant providing a range of 300 kilometers, designed for high-utilization drivers and longer routes.
These vehicles come with a 6-year battery warranty, ensuring long-term viability for owners. Each taxi is also equipped with modern amenities, including Wi-Fi, charging ports, and advanced air conditioning.
Building a Robust Charging Infrastructure
One of the most ambitious aspects of the project is the development of a province-wide charging network. The government has approved the installation of 1,000 electric vehicle (EV) solar charging stations.
In Lahore, the rollout plan mandates a charging station every 3 kilometers to eliminate “range anxiety” for drivers. Fast-charging terminals are being strategically placed at existing petrol pumps, bus terminals, and key urban corridors. Supplying companies are contractually required to maintain one charging station for every 25 taxis they provide to the fleet.
Safety and Digital Integration
Passenger and driver safety are prioritized through deep integration with the Punjab Safe Cities Authority (PSCA). Every e-taxi is equipped with:
- Built-in Panic Buttons: Instant alerts sent to emergency responders in case of danger.
- GPS Tracking: Real-time monitoring of the entire fleet.
- Smart Meters: Ensuring fair, transparent pricing for every journey.
Furthermore, the fleet is being integrated into popular ride-hailing platforms like inDrive and Yango. This allows drivers to start accepting digital bookings immediately, ensuring a steady stream of customers from day one.
Empowerment Through the 30% Women’s Quota
In a significant move toward gender inclusivity, the Punjab government has reserved a 30% quota for women drivers. To encourage participation, female applicants receive a higher down payment subsidy (60%). These taxis will feature distinct identifiers to help passengers recognize female-led services, fostering a safer environment for women commuters in cities like Lahore.
Geographic Rollout and Future Expansion
While the pilot phase has commenced in Lahore, the Punjab government is already preparing for a rapid secondary rollout. The service is scheduled to expand to:
- Faisalabad
- Multan
- Rawalpindi
This expansion is part of a broader strategy to replace 10% of all public transport in Punjab with electric alternatives by 2030. By reducing tailpipe emissions to zero, the government expects a measurable decrease in the Air Quality Index (AQI) across the province’s most congested industrial hubs.
The Punjab E-Taxi Scheme represents more than just a transport upgrade; it is a comprehensive economic package. By combining high-tech Chinese EV technology with local assembly and aggressive government subsidies, Punjab is setting a new standard for urban development in South Asia.