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Government of Punjab Motorbike Scheme
One of Maryam Nawaz’s first major initiatives as chief minister of Punjab is a scaled-down reimagination of giveaways that became the signature projects of her father’s and her uncle’s governments. Only time will tell whether the motorcycle scheme will become a source of adulation or — like the older Sharifs’ yellow cab schemes — a source of controversy. Nawaz’s federal and Shehbaz’s provincial-level taxi schemes both helped improve the standard of taxicabs on the streets, but they caused significant losses to the government due to flaws in the financing models and unscrupulous actions by parties on all sides of the transactions.
Maryam’s scheme, however, is not commercial. Much like Shehbaz’s more successful laptop schemes, Maryam’s plan benefits students — in this case, those enrolled in universities or graduate colleges across Punjab. Applicants only need proof of enrolment and a valid driving licence to qualify for the scheme, which will see 20,000 bikes — including 1,000 e-bikes — distributed on interest-free instalment plans in its first phase. The government is setting aside Rs1 billion as a markup subsidy and will also pay Rs20,000 per bike to cover down payments for the students. After this, men will be on the hook for Rs11,676 per month, while female applicants will get even more lenient terms — Rs7,325 per month.
But while the PML-N’s chequered record with handouts certainly makes some wariness of the scheme understandable, if properly administered, it could play a major role in addressing the transportation challenges faced by students from middle and lower-income backgrounds, especially in areas where reliable public transport is not available. And even if we factor in estimated operating costs, the bikes are certainly a good deal for any students who qualify.
However, without proper oversight, the scheme would be ripe for the same kind of shady dealings that took over the yellow cab schemes, with pre-planned defaults and resale for profit being a genuine risk. Without transparency and some form of third-party oversight, any iteration of the scheme could become a political time bomb.
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