Energy-Efficient Fan Scheme to Launch Nationwide by End of July, Confirms Finance Minister

Pakistan’s federal government is set to roll out the Prime Minister’s Fan Replacement Program by the end of July 2025, a move seen as a cornerstone in the country’s energy efficiency drive.

Federal Finance Minister Senator Muhammad Aurangzeb, while chairing a detailed readiness review, reiterated the government’s resolve to align energy savings with broader economic reforms. The program, strongly advocated by Prime Minister Shehbaz Sharif, is not merely about fan replacements—it’s a strategic national step toward reducing power consumption and boosting financial inclusivity.

The plan involves replacing 88 million outdated fans—which account for roughly 60% of all installed fans in the country—with DC-powered energy-efficient models. These new fans can reduce household electricity usage significantly, offering relief during the high-demand summer months.

Backed by a Rs2 billion subsidy, the initiative will run under an On-Bill Islamic Financing model, enabling consumers to pay for fans in small installments through their monthly electricity bills. Participating commercial banks will facilitate financing at KIBOR + 2%, while the government offers a 10% first-loss guarantee to reduce lender risk.

NEECA, the National Energy Efficiency and Conservation Authority, will lead the rollout, in partnership with the Punjab Technology Investment Board and Power Information Technology Company. Agreements with banks have been finalized, ensuring digital integration for seamless disbursement and repayment.

This 10-year national campaign is projected to cut peak energy demand by 6,000–7,000 MW, a significant impact on the country’s chronic power shortages and high capacity payments.

Minister Aurangzeb directed stakeholders to complete final preparations within three weeks to ensure a smooth nationwide launch.