Pakistan Seeks IMF Nod to Defer Flood-Hit Power Bills

News Desk
3 Min Read

Islamabad ( The COW News Digital)Pakistan’s federal government has formally requested the International Monetary Fund (IMF) to allow a three-month deferment of electricity bills for consumers in flood-hit areas, reviving a similar relief initiative used during the 2022 floods.

According to officials, Prime Minister Shehbaz Sharif directed the Finance Ministry to engage with the IMF after unprecedented flooding displaced millions of people and damaged over 1.3 million acres of standing crops across Punjab, Sindh, and southern regions of the country. The Finance Ministry held a virtual meeting with IMF representatives on Friday, where Pakistan sought approval to temporarily suspend bill collections in the worst-affected regions.

The IMF has requested detailed data on damages and the financial impact of the proposed relief measure, which the Power Division is expected to submit within the week. Officials confirmed that consumers of LESCO, GEPCO, FESCO, and MEPCO have been among the hardest hit, while SEPCO customers could also be impacted as floodwaters continue to rise.

Energy Minister Sardar Awais Leghari told The Express Tribune that the most urgent issue relates to unpaid August bills. “We are compiling district-wise data to determine the exact financial requirement for the relief package,” he said, adding that the Prime Minister is committed to reducing the burden on ordinary citizens.

The government is evaluating several options to provide relief, including targeted subsidies through the Benazir Income Support Programme (BISP). However, this mechanism may not cover all affected households, so a broader flood relief package is also being considered.

Agriculture has been severely impacted, with over 6,500 cattle reportedly washed away and rice crops in Gujranwala Division suffering the worst damage, accounting for nearly 18 percent of total crop losses. The federal government has already declared an “agricultural emergency” and pledged compensation to farmers, including potential waivers of outstanding loans.

The IMF delegation is scheduled to arrive in Pakistan later this month for ongoing programme review talks. Finance Ministry officials are also expected to seek adjustments in primary budget surplus targets and provincial cash surplus requirements to create fiscal space for relief and reconstruction efforts.

Observers note that swift IMF approval will be crucial to ensure that flood victims receive timely support before the situation worsens.

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