Shehbaz Sharif Government Requests IMF to Suspend Flood Victims’ Electricity Bills
The government has sought relief from the IMF for residents of flood-affected areas by requesting a three-month deferral of electricity bills, similar to the arrangement made during the 2022 floods.
The recent floods across three rivers in Pakistan have displaced hundreds of thousands of people and damaged crops spread over 1.3 million acres. Prime Minister Shehbaz Sharif directed the Ministry of Finance to approach the IMF for electricity bill relief. On Friday, Finance Ministry officials held a virtual meeting with IMF representatives and requested a three-month deferral of electricity bills for flood-hit consumers. The IMF, in response, has asked for detailed damage data, which the Power Division will submit later this week.
According to sources, so far the consumers of LESCO, GEPCO, FESCO, and MEPCO have been affected, while SEPCO consumers may also face flood-related impacts.
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Federal Minister for Energy, Sardar Awais Leghari, told The Express Tribune that the most urgent matter is related to August bills, which have already become due. He said data is being compiled to assess the financial requirements, after which the government will announce a formal relief plan. The Prime Minister, he added, is keen to reduce the burden on consumers.
The government is considering multiple options. One possibility is to provide relief through the Benazir Income Support Program (BISP), though this would not cover all victims. Another option is to launch a comprehensive flood relief package. The floods have severely impacted districts including Gujrat, Gujranwala, Sialkot, Narowal, Kasur, Muzaffargarh, Multan, and Bahawalpur. Around 6,500 livestock have perished, while crops on 1.32 million acres have been destroyed.
People are in urgent need of government aid as they have lost both their homes and livelihoods. The government has already declared an agricultural emergency, and the Prime Minister has directed that relief must reach both rural and urban populations.
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Sources revealed that Punjab has not yet submitted claims for the 1.32 million acres of crop losses, as the provincial government is still assessing the post-flood situation. Federal Minister for National Food Security, Rana Tanveer Hussain, has said that the government will waive financial dues of farmers in affected regions.
He further added that once surveys are completed, a Farmers’ Support Package will be announced. Initial data suggests that Gujranwala Division suffered the highest losses (18%), with rice crops being severely hit. An IMF delegation is expected to arrive in Pakistan by the end of this month.
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According to insiders, the Finance Ministry may also consider requesting the IMF to review targets for the primary budget surplus and provincial cash surplus, while simultaneously working on the Farmers’ Support Package.
