ISLAMABAD: The federal government is preparing to launch a 10-year nationwide programme to replace old electric fans with energy-efficient models in a bid to reduce power consumption and promote financial inclusion.
The initiative — called the Prime Minister’s Fan Replacement Programme — will be formally launched later this month and aims to replace 88 million outdated fans across the country. Currently, Pakistan has around 147 million fans installed, and nearly 60% of them are considered energy-inefficient.
The programme is backed by a Rs2 billion fund and will operate under the On-Bill Islamic Financing model. Under this scheme, electricity consumers will be able to buy new, energy-saving fans on easy instalments through their electricity bills .Power distribution companies, including K-Electric, will carry out the on-bill financing model, while instalment deductions will be managed through NADRA, 1-Link, and partnering banks.
The financing will be available at Karachi Interbank Offered Rate (KIBOR) plus 2%, with the government covering a 10% first-loss guarantee to minimise the risk for lenders.
A high-level meeting chaired by Finance Minister Muhammad Aurangzeb on Monday reviewed progress on the programme. The meeting was attended by Power Minister Awais Leghari, State Bank Governor, Pakistan Banks Association chairman, and other senior officials from the finance and power sectors.
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The National Energy Efficiency and Conservation Authority (NEECA) briefed participants on the operational readiness of the scheme. This includes finalising agreements with banks, integration of banking systems, and technical support from the Punjab Information Technology Board (PITB) and the Power Information Technology Company (PITC). PITC will provide live API access to consumer data to help identify and onboard eligible customers.
NEECA is also developing a digital portal and has already engaged leading fan manufacturers to support the replacement drive. The replacement cost per fan is estimated at Rs10,500, with flexible repayment periods of 6 to 18 months.
The initiative mainly targets small households and aims to ease the country’s peak summer electricity load, which can reach as high as 11,000 megawatts. By replacing old fans with energy-efficient ones, the programme is expected to reduce power demand by 6,000 to 7,000 megawatts and lower the government’s capacity payments to power producers.
The scheme currently targets 22 million verified electricity users and will gradually expand across all DISCOs and K-Electric.
Finance Minister Aurangzeb emphasised the prime minister’s strong commitment to energy reforms, noting that the programme can drive energy efficiency, economic stability, and financial inclusion. “It has the potential to influence consumer behaviour, reduce electricity demand, and offer broader economic benefits,” he said.
He also appreciated the proactive involvement of all stakeholders, especially the banking sector, and instructed that all preparations be completed within two to three weeks to allow for the programme’s official rollout.
The meeting concluded with all stakeholders reaffirming their commitment to ensuring the smooth and timely launch of this key national initiative, which is part of the government’s broader energy and economic reform agenda.
