Pakistan requires financing of around $3.5 billion to replace 88 million inefficient fans—50 million in rural areas and 38 million in urban households—under the Prime Minister’s Fans Replacement Programme.
According to a news report, the government has approved the programme, with the Finance Division providing a Technical Supply Grant (TSG) of Rs2 billion in phases.
Domestic cooling demand in Pakistan peaks at 30,154 MW in summer, compared with 12,500 MW in winter.
Fans alone account for around 11,799 MW, or 67% of the total 17,610 MW cooling load, highlighting the impact of inefficient fans on electricity consumption and associated capital and operating costs.
The Prime Minister’s Fans Replacement Programme plans to replace 88 million fans out of an estimated 147 million over the next ten years, which is expected to reduce peak electricity demand by up to 5,000 MW, easing pressure on the national grid during summer.
Consumers will be able to purchase energy-efficient fans through monthly instalments added directly to their electricity bills under an on-bill financing model.
Banks participating in the programme will offer financing at KIBOR + 2 percent, with tenures up to 18 months, covering fan costs ranging from Rs10,000 to Rs30,000. The government has set aside Rs1.5 billion as a risk guarantee to encourage bank participation.
The financing model is structured on Islamic Musawamah principles and includes eligibility criteria based on consumers’ electricity bill payment history. Participation is voluntary, and applications can be submitted via the NEECA Online Portal (NOP) through web or mobile platforms. Fan manufacturers will handle installation, dismantling of old units, and after-sales service.
