Islamabad, February 12, 2026 — 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, terming it a key initiative for energy conservation, fiscal responsibility, and climate action.
Addressing the program’s formal launch, the finance minister emphasized that the initiative remains a high priority for the Ministry of Finance. He assured continued support to the Power Division to ensure smooth implementation and rapid scaling of the project across the country.
PKR 2 Billion Risk Guarantee to Support Financing
Highlighting the ministry’s role, Senator Aurangzeb revealed that PKR 2 billion has been allocated in the federal budget as a 10 percent first-loss risk guarantee. This financial backstop is aimed at encouraging commercial banks to actively participate by mitigating initial credit risk and facilitating affordable financing for consumers seeking to replace conventional fans with energy-efficient models.
“The facility will help strengthen banks’ confidence and enable easier access to financing for households, thereby accelerating adoption of energy-efficient appliances,” he said.
Successful Pilot Phase Completed
Although the program was formally launched on Wednesday, the finance minister shared that a pilot phase had already been completed in collaboration with the State Bank of Pakistan (SBP) and the banking sector. The proof of concept has been successfully established, with 11 banks participating in the pilot.
During the trial phase, approximately 186 energy-efficient fans were installed, with financing disbursements of around PKR 1.35 million benefiting 67 borrowers. Senator Aurangzeb described this as an encouraging start, noting that digital enablement systems, financing mechanisms, and disbursement processes are now fully operational.
Rapid Scaling to Maximize Impact
The finance minister acknowledged the leadership of Federal Minister for Power Awais Leghari in driving the initiative forward and said the next phase will focus on rapid nationwide expansion in coordination with the SBP and commercial banks.
The goal, he explained, is to accelerate implementation so that energy savings and financial benefits are realized much earlier, rather than over a prolonged 10-year period.
Advancing Energy and Climate Goals
Reiterating the government’s broader objectives, Senator Aurangzeb said the Ministry of Finance will continue to extend full support to advance energy conservation, strengthen fiscal sustainability, and contribute to Pakistan’s climate change agenda.
Experts believe that the Fan Replacement Program could significantly reduce electricity consumption, lower household energy bills, and help ease pressure on the national power grid, while also supporting Pakistan’s commitments to climate resilience and environmental sustainability.