In the wake of devastating floods, the Pakistani government is preparing to offer one month of relief on electricity bills for residents in hard-hit areas — but the plan hinges on securing the International Monetary Fund’s (IMF) approval.
According to officials familiar with the matter, Prime Minister Shehbaz Sharif has asked Finance Minister Ishaq Dar to raise the proposal with the IMF during ongoing discussions. The package would temporarily exempt both rural and urban households in flood-affected districts from paying their electricity bills.
The request highlights the government’s tightrope walk between providing urgent relief and adhering to IMF program conditions. Islamabad cannot unilaterally roll out subsidies or exemptions without IMF clearance, given the country’s fragile economic position and commitments under the bailout program.
While the proposed waiver is limited to one billing cycle, it would offer short-term breathing space for families already struggling with damaged homes, lost crops, and disrupted livelihoods. Officials argue that without such relief, the disaster’s financial toll could deepen humanitarian pressures in these communities.
The talks with the IMF will determine whether the government can move forward with the plan.
