In a pivotal move to advance energy conservation and affordability, the Government of Pakistan will officially launch the Prime Minister’s Fan Replacement Program by late July, as confirmed during a high-level meeting led by Finance Minister Senator Muhammad Aurangzeb.
The initiative targets the replacement of 88 million old, power-hungry fans with modern DC energy-efficient fans, directly impacting millions of households. Currently, there are an estimated 147 million fans in use across the country, with a significant portion contributing to high electricity usage and strain on the power grid.
“This program is part of a broader commitment by Prime Minister Shehbaz Sharif to modernize energy use and reduce household costs,” stated Aurangzeb. He emphasized the program’s role in shaping consumption behavior, while also alleviating peak load burdens, especially during intense summer months.
The scheme is structured as a 10-year, subsidized national rollout, supported by a Rs2 billion fund, and implemented through an Islamic financing model that integrates loan repayments with monthly electricity bills. Consumers will be able to access financing through commercial banks, where the government offers a 10% first-loss risk cover and loans are extended at KIBOR + 2%.
The implementation agency, NEECA, has finalized technical and financial frameworks with banking partners. Digital integration is underway to ensure a hassle-free user experience.
Also supporting the scheme are the Punjab Technology Investment Board and Power Information Technology Company, which are streamlining infrastructure for loan disbursement and monitoring.
The long-term outcome is expected to be significant: energy savings between 6,000–7,000 megawatts—a transformation that could help reduce the country’s dependency on expensive energy imports and capacity payments, while offering real savings to ordinary citizens.
Minister Aurangzeb has instructed all executing bodies to fast-track logistics and readiness within the next two to three weeks for the national rollout.
