Govt backs PM’s Fan Replacement Program with Rs2bn support

February 13, 2026 (MLN): The Prime Minister’s Fan Replacement Program, a key initiative to promote energy efficiency and climate action, received a significant boost when the Ministry of Finance pledged full support for its rapid implementation.

Launched yesterday, the program seeks to replace conventional fans with energy-efficient models, backed by a Rs2 billion risk guarantee to encourage banking sector participation and facilitate consumer financing. 

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has reaffirmed the Ministry of Finance’s full commitment to supporting the Prime Minister’s Fan Replacement Program, said a press release.

The Finance Minister emphasised that, from the Ministry of Finance's perspective, 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.

Highlighting the Ministry’s role, Senator Aurangzeb stated that the Ministry of Finance has allocated PKR 2 billion in the budget as a 10% first-loss risk guarantee.

This facility is designed to encourage banking institutions to actively participate in the program by mitigating initial credit risk and facilitating financing for consumers seeking fan replacement.

He further shared that although the program was formally launched today, a pilot phase has already been conducted in collaboration with the State Bank of Pakistan and the banking sector.

The proof of concept has been successfully established, with 11 banks participating in the pilot.

During this phase, approximately 186 energy-efficient fans have already been installed, with disbursements of around Rs1.35 million benefiting 67 borrowers.

Describing this as an encouraging beginning, the Finance Minister noted that the digital enablement systems, financing mechanism, and disbursement processes are now operational and functioning effectively.

He acknowledged the leadership of Federal Minister for Power, Mr Awais Leghari, in driving the initiative forward and stated that the next phase will focus on rapidly scaling up the program in coordination with the State Bank and commercial banks.

The objective, he said, is to accelerate implementation so that the program’s benefits can be realized sooner rather than over an extended 10-year horizon.

The Finance Minister reiterated that the Ministry of Finance will continue to extend full support in advancing energy conservation goals, strengthening fiscal sustainability, and contributing to Pakistan’s broader climate change agenda.

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