The government emphasizes energy efficiency through the Prime Minister’s fan replacement initiative.
Islamabad: Federal Finance Minister Senator Muhammad Aurangzeb has reaffirmed the government’s robust dedication to energy efficiency and economic stability, emphasizing the importance of the Prime Minister’s Fan Replacement Program.
Aurangzeb chaired a high-level meeting to evaluate the program’s preparedness, highlighting Prime Minister Shehbaz Sharif’s specific focus on this initiative. He characterized it as an essential measure for advancing energy conservation, enhancing financial inclusion, and producing wider economic advantages for the country. The program is anticipated to officially commence its initial phase by the conclusion of July.
The Finance Minister emphasized the program’s potential to positively impact consumer behavior by substantially decreasing electricity consumption in households. The initiative seeks to substitute 88 million outdated, inefficient fans with energy-efficient alternatives across the nation, accounting for approximately 60% of the 147 million fans presently installed. This ambitious decade-long subsidized initiative is supported by a Rs2 billion fund and will function under a “On-Bill Islamic Financing” framework.
Consumers will have the opportunity to acquire energy-efficient DC fans via loans provided by commercial banks, with repayment incorporated into their monthly electricity bills. The government is offering a 10% first-loss guarantee for these loans, which will be issued at the Karachi Interbank Offered Rate (KIBOR) plus 2%. This mechanism aims to facilitate the transition to energy-efficient appliances for a broader spectrum of households.
The National Energy Efficiency and Conservation Authority (NEECA) is spearheading the implementation, having concluded agreements with participating banks and incorporated banking systems. The Punjab Technology Investment Board and Power Information Technology Company are also serving facilitative functions. The program is anticipated to generate considerable peak energy savings of 6,000–7,000 MW, which could significantly diminish Pakistan’s cooling load during peak summer months and lessen the strain of capacity payments.
Minister Aurangzeb praised the proactive engagement of all stakeholders, especially the banking sector, and instructed that all requisite preparatory measures be completed within the next two to three weeks to facilitate the seamless initiation of the program’s first phase. This initiative is a fundamental element of the government’s comprehensive energy and economic reform strategy, designed to attain sustainable development and alleviate citizens’ financial burdens by lowering their electricity expenses.
