Regulatory Alerts2026-02-17 | SH&SFD Circular No. 01 of 2026Added · Updated
Revised Term Sheet for Prime Minister's Fan Replacement Program
The Ministry of Energy (Power Division) issues the Revised Term Sheet for the Prime Minister’s Fan Replacement Program, establishing a structured on-bill financing facility for energy-efficient fan replacements. The scheme mandates that eligible consumers, defined as those with verifiable bills and no more than four delayed payments in the last 24 months, can access loans between Rs. 10,000 and Rs. 300,000 with a tenor of 6 to 18 months at a pricing rate of 1 Year KIBOR plus 2 percent per annum. Implementation requires the National Energy Efficiency & Conservation Authority to lead governance via a web portal, while DISCOs provide API data access and the State Bank of Pakistan facilitates bank onboarding and payment mechanisms. The Federal Government provides a 10 percent first loss credit guarantee to participating banks, with the program launching in a phased manner starting with a bank-led collection model before transitioning to an at-source deduction model within four months.