SBP asks banks to finance energy-efficient fans backed by 10% guarantee

February 18, 2026 (MLN): The State Bank of Pakistan (SBP) has directed all Islamic banks and conventional banks with Islamic banking branches to take necessary steps for the Prime Minister’s Fan Replacement Program (PM FRP).

This is aimed at promoting energy efficiency across the country.

Under the program, the federal government will provide a 10% first-loss credit guarantee to financing banks, reducing their risk in extending loans to households for energy-efficient fan purchases.

The procedure for settling guarantee claims will be shared separately.

Banks have also been advised to integrate their systems with the National Energy Efficiency & Conservation Authority (NEECA) online portal to ensure smooth implementation of the scheme.

The initiative forms part of the government’s broader push to conserve electricity and encourage energy-efficient appliances nationwide.

Earlier this month, the program received a significant boost when the Ministry of Finance pledged full support for its rapid implementation.

The initiative 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.

Senator Muhammad Aurangzeb reaffirmed the Ministry’s full commitment to supporting the PM Fan Replacement Program.

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