Pakistan approves PKR10.8B electricity bill relief for flood affected areas

In a significant relief move, Pakistan's federal cabinet has approved a financial package worth PKR 10.881 billion to waive and defer electricity bills for consumers in flood-affected areas of the country.

The decision comes in response to the catastrophic floods triggered by intense monsoon rains and glacial melt, which devastated large parts of Punjab and Khyber Pakhtunkhwa during August and September.

The relief package includes a complete waiver of August electricity bills for domestic consumers in flood-hit areas. Consumers who have already paid their bills will receive refunds in upcoming billing cycles.

In addition, bills for commercial, industrial, and agricultural consumers will be deferred, with repayments spread over seven months from December to June 2026.

To support this initiative, the cabinet approved the immediate release of PKR 10.881 billion as an advance subsidy to the Central Power Purchasing Agency (CPPA-G). This amount covers both the waived bills estimated at PKR 10.417 billion and the financial impact of the deferred payments, amounting to PKR 464 million.

The relief was proposed after a series of meetings convened by the prime minister to address the widespread financial hardship faced by residents in flood-stricken regions. The unprecedented damage to homes, livelihoods, and infrastructure left many unable to pay utility bills, while numerous areas experienced power outages or limited electricity access.

Verification of affected consumers will be carried out by power distribution companies (DISCOs), with oversight from the National Disaster Management Authority (NDMA), Provincial Disaster Management Authorities (PDMA), and local administrations to ensure transparency in disbursement.

Officials have acknowledged that further relief may be required in Sindh as flood impacts there continue to unfold. In case improvements in bill recovery or loss reduction are insufficient to absorb this financial burden, additional funds may be sought through supplementary grants from the contingency budget outside the power sector.