Pakistan plans to replace 88 million inefficient fans under the Prime Minister’s Fan Replacement Programme, requiring financing of around $3.5 billion to improve energy efficiency in urban and rural households.
The government has approved the initiative, with the Finance Division providing a Technical Supply Grant of Rs2 billion in phases to support the replacement of outdated fans across the country.
Domestic cooling demand peaks at 30,154 MW in summer compared with 12,500 MW in winter, with fans alone consuming 11,799 MW, which represents a significant portion of the total cooling load.
The programme aims to replace 88 million out of 147 million fans over the next ten years, reducing peak electricity demand by up to 5,000 MW and easing stress on the national grid.
Consumers can purchase energy-efficient fans through monthly instalments added directly to electricity bills, with banks offering financing at KIBOR + 2 percent for tenures up to 18 months to cover fan costs.
The financing is structured under Islamic Musawamah principles, and eligibility is based on electricity bill payment history. Fan manufacturers will manage installation, dismantling of old units, and provide after-sales service for participants.