ISLAMABAD: Finance Minister Muhammad Aurangzeb on Friday directed ministries and partner organisations to fast-track the launch of three flagship social impact initiatives — subsidised energy-efficient fans, a skills development bond, and a national small farmer credit scheme — expected to be unveiled by the prime minister in the coming weeks.
The initiatives aim to deliver tangible outcomes across energy efficiency, youth employment, and agricultural finance, and will be implemented in close coordination with regulators, financial institutions, and technical partners.
The first initiative — the Fan Replacement Programme — will offer affordable Islamic financing for replacing existing ceiling fans with energy-efficient models through a fully digital process. An online portal will facilitate customer onboarding, loan applications, fan selection from approved manufacturers, and repayment.
The government has earmarked Rs2 billion for the programme to gradually replace 88 million (60 per cent) of the 147 million old fans installed across the country.
Over 10 years, the shift is projected to generate peak energy savings of 6,000-7,000MW and reduce capacity charges against the cooling load, which reaches 11,000MW during summer months.
Initiatives include 10-year energy-saving fan programme, first skills impact bond, and uncollateralised digital loans for small farmers
Loans will be provided at the Karachi Interbank Offered Rate (Kibor) plus 2pc, with a 10pc first-loss government guarantee. Repayments will be recovered via electricity bills using an on-bill financing mechanism implemented by distribution companies (Discos), K-Electric, and the Power Information Technology Company (PITC). Punjab IT Board (PITB) will manage digital onboarding using real-time data access provided by PITC.
With an average net replacement cost of Rs10,500 per fan, payback periods will range from 6 to 18 months depending on the financing mode. The programme will initially target 22 million consumers with compliant payment histories.
Bond for skill development
The second initiative — the Pakistan Skills Impact Bond (PSIB) — will be the country’s first outcomes-based financing instrument and is described as a “trailblazer” in attracting both domestic and international capital. Developed under a $3.5 million foreign-funded pilot, the PSIB will fund skill development linked to employment outcomes.
He said the bond would set a precedent for innovative financing and attract outcome funders globally. All impact financing will align with six national priority pillars and contribute to multiple Sustainable Development Goals (SDGs).
The third programme — the National Subsistence Farmers Support Scheme (NSFSS) — will enable uncollateralised digital loans for small farmers owning or cultivating up to 12.5 acres, including tenants. Using agronomy-related satellite data from the Land Information and Management System (LIMS), banks will incorporate this data into credit scoring to extend input financing at reasonable markup rates.
The State Bank of Pakistan, in collaboration with commercial banks and the Pakistan Banks’ Association, will operationalise the scheme through a centralised portal managed by PITB, offering a fully digital customer journey.
The finance minister noted that this would be the first time space technology is used to drive agricultural credit decisions on a national scale. With 97pc of farmers falling under the 12.5-acre category, the initiative is expected to significantly improve rural livelihoods, enhance productivity, and advance financial inclusion.
He urged all stakeholders to expedite final preparations, stressing that timely delivery would signal the government’s efficiency and commitment to improving citizens’ lives.
Published in Dawn, August 16th, 2025
