Pakistan is gearing up for a massive energy-efficiency drive, aiming to swap out 88 million outdated ceiling fans over the next decade in a program that could slash peak electricity demand by thousands of megawatts. The government estimates it will need $3.5 billion in financing to execute the plan, which has been formally approved under the Prime Minister’s Fans Replacement Programme.
A Costly but Critical Energy Challenge
Electricity demand in Pakistan surges dramatically during the scorching summer months, jumping to 30,154 MW compared to just 12,500 MW in winter. A large share of this pressure comes from ceiling fans—responsible for 11,799 MW, or roughly two-thirds of household cooling load.
Officials say replacing the country’s vast stock of inefficient fans could lower peak demand by as much as 5,000 MW, reducing strain on the national grid, cutting power generation costs, and improving energy reliability during the hottest months.
Rural and Urban Coverage
The plan will target 50 million fans in rural households and another 38 million in cities. That’s out of an estimated 147 million fans currently in use, meaning nearly two-thirds of the nation’s ceiling fans will be replaced under this initiative.
Financing Structure: Pay Through Your Power Bill
To make the upgrade affordable, the government will introduce an on-bill financing system, allowing households to pay for new fans in monthly installments added directly to their electricity bills.
- Cost per fan: Rs10,000–Rs30,000
- Financing: KIBOR + 2% interest rate
- Repayment period: Up to 18 months
- Risk coverage: Rs1.5 billion government guarantee to banks
The Finance Division has already allocated Rs2 billion in phased funding to get the scheme off the ground.
How It Works
Applications for the program will be handled digitally through the NEECA Online Portal (NOP), accessible via web and mobile apps. Consumers must have a clean electricity bill payment history to qualify, and financing will be based on Islamic Musawamah principles.
Fan manufacturers partnering with the program will manage installation, dismantling of old fans, and after-sales service, making the switch straightforward for households. Participation is voluntary.
Why This Matters
Pakistan’s chronic power shortages are fueled in part by inefficient appliances that drive up peak demand, forcing the government to rely on expensive power imports or load-shedding. By swapping out millions of energy-guzzling fans, the initiative aims not only to stabilize the grid but also to cut household electricity costs over time.
If successful, this could be one of the largest appliance efficiency upgrades in South Asia, setting a precedent for similar programs targeting air conditioners, refrigerators, and other high-energy devices in the future.
