Pakistan launches energy-efficient fan program to cut power use

Pakistan’s government has launched a nationwide energy-efficient fan replacement program, aiming to promote energy conservation, fiscal responsibility and climate action, Finance Minister Muhammad Aurangzeb said Thursday.

According to Aurangzeb, the Ministry of Finance has prioritized the initiative and will continue providing full support to the Power Division to ensure smooth implementation and rapid expansion.

A PKR 2 billion allocation in the federal budget will serve as a 10% first-loss risk guarantee, encouraging commercial banks to participate by mitigating initial credit risk and facilitating consumer financing for energy-efficient fan replacements.

Although formally launched Thursday, the program’s pilot phase had already been conducted in collaboration with the State Bank of Pakistan and several commercial banks. Eleven banks participated, distributing approximately 186 energy-efficient fans and disbursing PKR 1.35 million to 67 borrowers.

The pilot established proof of concept for the financing model and demonstrated that digital systems, financing mechanisms, and disbursement processes are fully operational.

Aurangzeb described the pilot results as an encouraging start and acknowledged Federal Power Minister Awais Leghari for spearheading the initiative. He said the next phase will focus on scaling up the program in coordination with the State Bank and commercial banks to accelerate implementation and deliver benefits faster than previously projected under a 10-year horizon.

The finance minister reiterated that the government remains committed to advancing Pakistan’s energy efficiency, fiscal sustainability, and broader climate agenda.