KARACHI: Federal Minister for Finance Muhammad Aurangzeb on Thursday reaffirmed support for a government-backed fan replacement program aimed at reducing electricity consumption ahead of the summer peak season, as authorities seek to ease pressure on the power system and promote energy conservation.
The initiative allows consumers to replace older, electricity-intensive fans with energy-efficient models through bank financing. To encourage commercial banks to participate, the Ministry of Finance has allocated Rs2 billion ($7 million) as a 10 percent first-loss risk guarantee, designed to absorb part of the credit risk and facilitate lending to households.
“From the perspective of the Ministry of Finance, the initiative remains a high priority, and the Ministry will continue to provide all necessary support to the Power Division to ensure its successful implementation and rapid scaling,” the finance minister said in a statement.
Electric fans are among the most widely used appliances in Pakistan, especially during the long and intense summer months when electricity demand typically surges and contributes to strain on the national grid.
According to the finance ministry, the program was formally launched on Thursday after a pilot phase conducted in collaboration with the State Bank of Pakistan (SBP) and 11 commercial banks.
During the trial phase, around 186 energy-efficient fans were installed, with disbursements of approximately Rs1.35 million ($4,800) benefiting 67 borrowers.
Officials said the financing and digital systems required to process applications and disburse funds are now operational, paving the way for expansion.
Aurangzeb said the next phase would focus on scaling up the program more rapidly in coordination with the SBP and commercial lenders so that its benefits are realized sooner rather than over a 10-year horizon.
