The federal government will provide a 10 percent first-loss credit guarantee to commercial banks under the Prime Minister’s Fan Replacement Program, aiming to accelerate energy efficiency and reduce electricity consumption.
The guarantee will be routed through the State Bank of Pakistan, which will also facilitate the onboarding of banks and develop a mechanism for processing claims, including those arising during the initial rollout phase.
The move is expected to reduce lending risk for banks and encourage wider participation in financing energy efficient appliances at the household level. Under the program, the Ministry of Finance will allocate the required budget and support the settlement of credit guarantee claims, ensuring smooth execution of the scheme.
The initiative will be implemented through a centralized digital platform hosted by the Punjab Information Technology Board, integrating banks, power utilities, fan manufacturers, and the National Energy Efficiency and Conservation Authority.
Power distribution companies will provide data access through APIs to assess consumer eligibility, while banks will use this data for customer outreach in line with regulatory policies.
The scheme will offer financing to residential consumers with verified electricity bills, valid addresses, and satisfactory payment and credit history. Eligible customers will be able to access financing ranging from Rs. 100,000 to Rs. 300,000, with repayment periods between 6 and 18 months.
Banks have been advised to complete system integration with the NEECA portal to ensure timely and effective rollout of the program, which is expected to play a key role in reducing national energy consumption through efficient fan replacement.
It’s strange, first they wanted people to install solar when that reduced the electricity usage, they decided to end the net metering. Now with power efficient fans the electricity usage would reduce, how are they going to pay the IPPs? Increase the cost/unit?
I wonder those in power do they even think? Or who is going to get the commission this time?
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