Electricity Bill Relief for Flood-Hit Families: IMF Support

The government has approached the IMF to defer electricity bill relief for flood-hit families, aiming to ease their financial burden after the devastating 2025 floods.

The government of Pakistan has formally approached the International Monetary Fund (IMF) to seek support for electricity bill relief for flood-hit families. Officials confirmed that the request includes a proposal to defer electricity bills for three months, following the model used during the 2022 floods.

Prime Minister Shehbaz Sharif directed the Ministry of Finance to negotiate with the IMF to ease the financial pressure on millions of people displaced by recent floods. He stressed that the relief must reach both urban and rural flood-affected areas across the country.

IMF Requests Damage Data

A virtual meeting between the Finance Ministry and IMF officials took place on Friday. During the talks, Pakistan requested the IMF to postpone electricity bills in flood-affected areas for three months

IMF officials asked the government to provide detailed data on flood damages. The Power Division will submit this report within the week. This data will form the basis for the IMF’s decision on approving electricity bill relief for flood-hit families.

Widespread Flood Damage Across Pakistan

The recent floods in Pakistan’s three major rivers have caused large-scale devastation. Officials reported that floods displaced hundreds of thousands of people and destroyed crops on nearly 1.32 million acres of land.

Districts such as Gujrat, Gujranwala, Sialkot, Narowal, Kasur, Muzaffargarh, Multan, and Bahawalpur have suffered severe destruction. Floodwaters swept away more than 6,500 animals, adding to the crisis for rural families who rely heavily on livestock.

Electricity Companies Affected

So far, consumers of Lahore Electric Supply Company (LESCO), Gujranwala Electric Power Company (GEPCO), Faisalabad Electric Supply Company (FESCO), and Multan Electric Power Company (MEPCO) have been affected. Officials also warned that the Sukkur Electric Power Company (SEPCO) may soon face similar issues due to flooding.

Federal Minister for Energy Sardar Owais Leghari confirmed that the immediate challenge is the August electricity bills, which are already due. He explained that the government is collecting financial data to determine the exact needs of affected households. He assured that the Prime Minister’s priority is to reduce the burden on consumers, and an official announcement will follow soon.

Options Under Review for Flood Relief

The government is reviewing several options to assist. One option is to deliver aid through the Benazir Income Support Program (BISP). However, officials admitted this will not cover all victims. Another option under discussion is a broader flood relief package, which would directly support flood-hit families and farmers.

Prime Minister Shehbaz Sharif has already declared an agricultural emergency. He directed that relief efforts must reach both urban and rural communities equally, as both groups have suffered heavy losses.

Agricultural Losses and Farmers’ Support

Punjab has not yet submitted its official claims for agricultural damages, as officials are still assessing the situation after the floodwaters receded. Federal Minister for National Food Security Rana Tanveer Hussain said the government will waive financial dues for farmers in affected regions.

He added that once surveys are completed, the government will announce a special farmers’ support package. Initial data shows that Gujranwala Division has suffered the worst impact, accounting for nearly 18% of total agricultural damages. Rice crops, in particular, have been destroyed.

New Policy on Urban Flooding

The government has also decided to create a new plan to manage urban flooding. The Ministry of Climate Change has been tasked with preparing policies to control urban flooding and curb deforestation, which worsens flood risks.

The Prime Minister instructed the ministry to coordinate with provinces and set targets for a Climate Resilience Action Plan. The ministry will consult provincial governments on drainage systems, forest protection, and strategies to reduce future flood risks.

Officials said that improving urban drainage systems and reducing deforestation are top priorities. These measures aim to lower the chances of similar disasters in the coming years.

IMF Delegation to Visit Pakistan

An IMF delegation is scheduled to visit Pakistan at the end of this month. During these meetings, the Finance Ministry plans to request a review of the country’s primary budget surplus and provincial cash surplus targets. Work on the farmers’ support package is also expected to progress further during these discussions.

The government remains hopeful that the IMF will approve the electricity bill relief package, giving much-needed support to families who have lost their homes, livelihoods, and farmlands in the 2025 floods.

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