Govt initiative to replace old fans with energy saving fans in Pakistan

The Government of Pakistan is launching an ambitious initiative to replace old, inefficient fans with new energy-saving fans in households across the country. This move aims to reduce electricity consumption and save significant energy costs.
The initiative targets households with a total of 14.9 crore (149 million) fans. Cost Breakdown: Old Fan Price: 2,000 PKR and New Energy-Saving Fan Price: 10,000 PKR. Loan Amount for New Fan: 8,000 PKR (the difference between the old fan price and the new fan price)
Financial Plan for Households: Down Payment: 25% of the loan amount, which is 2,000 PKR, must be paid on the spot. Here is suggest government should not take down/spot payment all 8000 must be on installments. Remaining Loan: 8,000 PKR to be repaid in easy installments through bank loans provided under government schemes.
Energy Savings: The initiative is expected to save 7,000 megawatts (MW) of electricity, which will significantly reduce national power consumption and alleviate energy shortages.
The cost of 7,000 megawatts at 70 PKR per watt is 490,000 million PKR (490 billion PKR). Total Cost: The government requires 1,500 billion PKR to fund this initiative.
Financial Strategy: Establishment of a Public Listed Company: The government will establish a public listed company dedicated to manufacturing and distributing energy-saving fans. This company will issue shares to raise the required 1,500 billion PKR. The government may invest 500 million PKR initially to build public confidence and attract more investors. Issuing Shares: A prospectus will be issued to inform potential investors about the company’s goals, financial plans, and the expected benefits of the initiative. Shares will be offered to the public, inviting them to invest in this energy-saving venture.
Appointment of Directors: To ensure the successful management and operation of the new public company, the government will appoint a board of directors composed of reputable and experienced professionals. These directors will include:
Shabbar Zaidi: A well-known chartered accountant and former Chairman of the Federal Board of Revenue (FBR). Aqee Karim, a big name in corporate section, Arif Habib is also a pillar our economy, Anjum Nisar: An influential business leader with extensive experience in corporate management. Atiq ur Rehman: A financial expert with a strong background in banking and investment. Shahab Imam: An experienced corporate strategist with a track record of successful business ventures. Also include big names celeberities Like Mohsin Khan, Jawed Miandad, Jahangir Khan, Jehanshair Khan, Zaheer Abbas they inclusion build trust as they played for Pakistan they wore Pakistani uniform and their track record is free from match fixing.
Expected Outcomes: Economic Impact: The creation of the public listed company will generate job opportunities and stimulate economic growth. The initiative will attract investments, both domestic and international, boosting investor confidence in Pakistan’s energy sector.
Energy Efficiency: The replacement of 149 million old fans with energy-saving fans will significantly reduce electricity consumption. Estimated cost savings from the energy savings: 7,000 MW at 70 PKR per watt, resulting in 490 billion PKR saved annually.
Environmental Benefits: Reduced energy consumption will lead to lower greenhouse gas emissions, contributing to environmental sustainability. Reevaluation of Independent Power Producers (IPPs)
Additionally, the government must reevaluate the current approach to Independent Power Producers (IPPs):
Existing IPPs: Pakistan currently has 100 IPPs with a capacity of 50,000 MW, but only 20,000 MW is being utilized. Existing IPPs charge rent for full capacity even though they are not fully operational.
Financial Burden: The government paid 2,100 billion PKR in rent this year, which will increase to 2,800 billion PKR next year, and then to 3,500 billion PKR in subsequent years. Action Plan: Stop the installation of further 24 new IPPs as they are not required. Negotiate with existing IPPs to operate under more favorable terms, similar to conditions made by IMF with our government. Consider reducing the number of IPPs from 100 by winding up 20 to 40 IPPs to reduce financial burden and optimize the use of existing resources.
Attracting Foreign and Overseas Pakistani Investors through a Public Listed Company: Establishing a public listed company dedicated to manufacturing and distributing energy-saving fans is a strategic move poised to attract both domestic and international investors. By issuing shares, the company opens up opportunities for foreign investors and overseas Pakistanis to participate in a lucrative venture that promises significant returns and stable dividends. The initiative is backed by the government, which ensures confidence and stability, further bolstered by an initial investment of 500 million PKR to demonstrate commitment and build trust. This venture not only promises financial gains through dividends and profit sharing but also contributes to Pakistan’s economic stability by saving substantial energy costs and generating employment. Attracting foreign investment and capital from overseas Pakistanis will bring much-needed foreign exchange into the country, helping to repay national loans and mitigate the threat of default. This dual benefit of financial gain for investors and economic resilience for Pakistan makes it a compelling opportunity for those looking to invest in a socially responsible and economically sound initiative.
Conclusion: This government initiative represents a significant step towards energy efficiency and economic development in Pakistan. By replacing old fans with new energy-saving fans, the country can save substantial amounts of electricity and reduce power shortages. The establishment of a public listed company to oversee the manufacturing and distribution of these fans, coupled with the appointment of experienced directors, ensures the project’s success and builds public and investor confidence. Additionally, reevaluating and negotiating terms with IPPs will optimize resource utilization and reduce financial burdens. This initiative is poised to create a positive impact on Pakistan’s economy, energy sector, and environment.