The federal government has taken a significant step toward reducing electricity consumption and controlling rising power costs by making energy-efficient products mandatory for all public sector procurement. Under the new policy, federal government departments and institutions will now be required to purchase only energy-efficient, star-rated products for official use.

The directive has been formally notified by the Public Procurement Regulatory Authority (PPRA) through the “Minimum Energy Performance Standards Compliant Pakistan Energy Labelled Products Regulations, 2025.” The regulations have come into immediate effect and apply to all federal government procuring agencies without exception.

According to the notification, government entities can now procure only those products that comply with minimum energy performance standards approved by the National Energy Efficiency and Conservation Authority (NEECA). These standards must also be endorsed by the Pakistan Standards and Quality Control Authority (PSQCA), ensuring uniformity and credibility in the certification process.

The move is part of a broader national strategy to improve energy efficiency, reduce wastage, and ease pressure on Pakistan’s already strained power sector. Public sector offices, which consume a substantial amount of electricity through appliances such as air conditioners, refrigerators, lighting systems, and office equipment, are expected to play a leading role in setting an example for energy conservation.

By enforcing star-rated energy labels, the government aims to ensure that only products meeting defined efficiency benchmarks enter official use. These labels provide clear information about a product’s energy consumption, allowing procurement officials to make informed decisions that balance performance with long-term cost savings.

Energy experts believe the policy could significantly reduce electricity bills for government institutions over time. While energy-efficient products may carry slightly higher upfront costs, they typically consume less power, resulting in lower operational expenses throughout their lifespan. This shift is expected to generate substantial savings for the public exchequer while also contributing to environmental sustainability.

The regulations also strengthen the role of NEECA and PSQCA in monitoring compliance. Manufacturers and suppliers wishing to sell products to government departments must now ensure their offerings meet the prescribed standards and carry valid Pakistan Energy Labels. This is likely to encourage local manufacturers to upgrade their production processes and align with modern efficiency requirements.

Beyond financial savings, the initiative supports Pakistan’s climate and energy goals by reducing carbon emissions associated with excessive electricity consumption. As the country faces recurring energy shortages and high fuel import costs, improving efficiency is increasingly seen as one of the most practical solutions.

Officials believe that once fully implemented across federal departments, the policy could eventually be extended or replicated at the provincial and local government levels. If adopted more widely, it may also influence consumer behavior in the private market, where demand for energy-efficient appliances could rise.

With these regulations now in force, the government has signaled a clear shift toward responsible energy use, fiscal discipline, and sustainable procurement practices within the public sector.