Islamabad — August 16, 2025 — Finance Minister Muhammad Aurangzeb has directed the fast-tracked implementation of three major flagship initiatives—energy-efficient fan replacement, a skills development impact bond, and a digital lending scheme for small farmers—set to be launched soon under the direct oversight of the Prime Minister.
Finance Minister Muhammad Aurangzeb has directed authorities to fast-track the roll-out of three crucial social impact initiatives within weeks, focused on skills development, smallholder farmer financing, and energy efficiency.
The minister gave these directives while chairing… pic.twitter.com/LjG7ym461b
— Business Recorder (@brecordernews) August 15, 2025
The Fan Replacement Programme aims to improve energy efficiency nationwide by offering affordable Islamic financing for the purchase of energy-saving ceiling fans via an entirely digital platform. Installations are expected to benefit 60 percent of Pakistan’s existing fans—roughly 88 million units—through access to subsidized financing at KIBOR plus 2 percent, supported by a 10 percent government-guaranteed buffer. With a Rs2 billion budget, this initiative anticipates savings of 6,000–7,000 MW in peak energy demand over the next decade, with repayments conveniently linked to customers’ electricity bills.
The second program, Pakistan’s first Skills Impact Bond, marks a pioneering turn in outcome-based financing. Fueled by a $3.5 million foreign-funded pilot, this scheme will attract domestic and international investors to fund skill-building projects tied directly to job placement outcomes. The bond aligns with national development goals and supports multiple sustainable development targets through measurable impact financing.
Thirdly, the National Subsistence Farmers Support Scheme (NSFSS) is structured to extend uncollateralized digital loans to small-scale farmers cultivating up to 12.5 acres. Leveraging satellite-driven agronomy data from the Land Information and Management System (LIMS) for innovative credit scoring, the program streamlines access to financing through a centralized digital portal managed by the Punjab IT Board in coordination with the State Bank of Pakistan and commercial banks—empowering nearly 97 percent of the nation’s smallholder farmers.
Aziz emphasized that these initiatives—spanning energy efficiency, employment, and rural finance—will significantly enhance citizens’ daily lives and reinforce the government’s commitment to timely and effective public service delivery.
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