Govt launches nationwide fan replacement drive to cut power demand
By Shahzad Paracha :
The federal government on Thursday launched a nationwide energy efficiency drive, the Prime Minister’s Fan Replacement Programme, aimed at replacing 100 million conventional ceiling fans with energy-efficient models, while also indicating plans for restructuring debt in the power sector as part of broader structural reforms.
Addressing the launch ceremony, Federal Minister for Power Awais Leghari said the initiative reflects the government’s commitment to difficult but essential reforms in the energy sector. He said Prime Minister Shehbaz Sharif, the cabinet and relevant institutions were united on implementing reforms despite political challenges.
“We have taken painful steps and will continue to do so. These reforms are unavoidable if we want a sustainable energy sector,” Leghari said, adding that financial restructuring of the power sector was also under active consideration.
Leghari noted that electricity demand had fallen to around 8,000 megawatts at certain times, largely due to rapid solar adoption driven by previously high tariffs. He said this trend had created operational challenges for the national grid, as power plants must still be maintained even if they operate only for limited hours.
On net metering, the minister said the Power Division would consult National Electric Power Regulatory Authority (NEPRA) on the prime minister’s instructions, while assuring that existing net metering consumers would remain under the current policy framework.
He also claimed that electricity tariffs had declined by up to 20 percent over the past 18 to 20 months, with protected consumers receiving relief of 35 to 40 percent and industrial tariffs reduced to around 11.5 cents per unit.
Under the fan replacement scheme, consumers will be able to obtain energy-efficient fans at a subsidised cost, paying approximately Rs1,000 per unit. The earlier condition of returning old fans has been withdrawn to encourage wider participation.
Leghari said the programme would lower peak-hour electricity consumption, reduce carbon emissions, and ease pressure on the national grid by cutting overall demand.
Minister for Climate Change Musadik Malik termed the initiative a milestone, stating that households could save up to Rs12,000 per fan annually. He linked energy reforms to climate resilience, noting that recent floods had caused losses close to 10 percent of GDP and displaced millions.
“Energy efficiency is not just about lower bills, it is about protecting our future from climate disasters,” Malik said.
Managing Director of the National Energy Conservation Authority (NECA), Humayoun Khan, said the programme would significantly reduce electricity consumption and strengthen grid stability.
Meanwhile, Federal Minister for Finance Muhammad Aurangzeb reaffirmed the Ministry of Finance’s support for the initiative, announcing that Rs2 billion had been allocated as a 10 percent first-loss risk guarantee to encourage banks to finance consumer participation.
He said a pilot phase conducted with the State Bank of Pakistan had already involved 11 banks, with 186 fans installed and Rs1.35 million disbursed to 67 borrowers, demonstrating the model’s viability.
Aurangzeb added that the next phase would focus on rapid nationwide scaling, ensuring the benefits reach consumers much sooner than originally projected.
The government believes the fan replacement programme will play a critical role in reducing electricity demand, easing fiscal pressure, and supporting Pakistan’s long-term climate and energy sustainability goals.
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