The federal government has requested the International Monetary Fund (IMF) to approve relief measures for consumers in flood-hit areas by waiving electricity bills. This decision comes as the country grapples with the worst flooding in decades, which has displaced millions and damaged crops on over 1.3 million acres of land.
According to a report by The Express Tribune, Prime Minister Shehbaz Sharif directed the Ministry of Finance to seek IMF approval for the waiver, following the devastation caused by floods in the Chenab, Ravi, and Sutlej river basins. The ministry held a virtual meeting with the IMF on Friday, requesting the deferral of electricity bills for three months, similar to the relief provided after the 2022 floods.
The IMF has asked for more data, which the Power Division is expected to provide later this week. In the meantime, consumers in areas served by Lahore Electricity Supply Company, Gujranwala Electric Power Company, Faisalabad Electric Supply Company, and Multan Electric Power Company have been significantly impacted. There are concerns that Sukkur Electric Power Company customers could also be affected.
Federal Minister for Power Sardar Awais Laghari confirmed that the immediate focus is on addressing the electricity bills for August, which are now due. He emphasized that the Power Division is collecting data from the affected areas to determine the fiscal requirements for providing relief.
The government is considering multiple ways to offer assistance. One option is through the Benazir Income Support Programme, but it would limit outreach. Another is a broader flood relief fiscal package.Â
Minister Laghari stated that a formal announcement would be made soon to provide much-needed support to the affected regions.
The floods have devastated several districts, including Gujarat, Gujranwala, Sialkot, Narowal, Muzaffargarh, Multan, and Bahawalpur. Nearly 6,500 animals have perished, and substantial crop damage has occurred, particularly in rice fields. The government has already declared an agricultural emergency in these areas.
Rana Tanveer Hussain, Federal Minister for Food and National Security, also highlighted that provincial governments would waive land revenue for affected regions. A farmer support package, similar to the one offered after the 2022 floods, is being developed, with surveys of the affected areas set to conclude by mid-September.
The IMF mission is expected to visit Pakistan by the third week of September, and the Ministry of Finance is reviewing the possibility of requesting the IMF to relax fiscal targets due to the significant losses.Â
