ISLAMABAD:
In a bid to provide urgent relief to millions of people devastated by the worst flooding in decades, the federal government has approached the International Monetary Fund (IMF) to allow a three-month waiver on electricity bills in flood-affected areas.
The catastrophic floods, triggered by overflowing in the Chenab, Ravi, and Sutlej rivers, have displaced millions and destroyed standing crops over 1.3 million acres of farmland. Prime Minister Shehbaz Sharif directed the Ministry of Finance to engage with the IMF and secure its approval for the waiver, according to official sources.
Following the premier’s instructions, finance officials held a virtual meeting with the IMF on Friday, requesting deferment of electricity bills for flood victims. Authorities argued that a similar measure had been approved in 2022, setting a precedent. The IMF, however, has asked for detailed data, which the Power Division is expected to share within this week.
Federal Power Minister Sardar Awais Leghari told The Express Tribune that the government’s immediate concern is the August electricity bills, now due for payment. “We are collecting data from the affected regions and will soon assess the fiscal implications,” he said, adding that a formal announcement of relief measures is expected shortly.
Areas under the Lahore, Gujranwala, Faisalabad, and Multan electricity supply companies have already been severely hit, while Sukkur’s network could also face similar devastation.
Relief Options on the Table
The government is weighing two possible mechanisms: direct financial assistance through the Benazir Income Support Programme (BISP), or a broader flood-relief fiscal package. Officials acknowledged that BISP’s outreach may not cover all affected households, making the latter option more feasible.
Meanwhile, losses in Punjab have been staggering. Districts including Gujrat, Gujranwala, Sialkot, Narowal, Muzaffargarh, Multan, and Bahawalpur remain under water. Nearly 6,500 livestock have perished, while rice fields in particular have suffered extensive damage. Preliminary surveys suggest crop losses in some divisions exceed 18 percent.
Federal Minister for Food Security Rana Tanveer Hussain confirmed that provincial governments are also considering waiving land revenue in badly-hit regions. He said a farmer support package will be finalized after damage surveys conclude by mid-September.
IMF Mission to Arrive This Month
The IMF mission is expected in Pakistan by the third week of September. Officials said the finance ministry may also seek relaxation in primary budget surplus and provincial cash surplus targets due to the extraordinary scale of losses. A farmer relief package, modeled on the one rolled out after the 2022 floods, is under preparation.
This week, a delegation of federal secretaries visited the National Emergencies Operation Center at NDMA headquarters, where they were briefed on the ongoing response to the crisis.
Food Inflation Adds to Woes
Flooding has disrupted supplies of perishable goods, worsening inflationary pressures. According to the Pakistan Bureau of Statistics, year-on-year inflation for the week ending September 11 rose by 5.03 percent. Prices of tomatoes surged by 91 percent, sugar by 29.3 percent, wheat flour by 18.7 percent, pulses by 15 percent, and beef by 12 percent.
On a positive note, the weekly Sensitive Price Indicator (SPI) showed a slight decline, thanks to a 10 percent reduction in wheat flour prices after administrative measures by the Punjab government.
