Pakistan requests approval from the IMF to eliminate electricity costs in flood-prone areas.

The International Monetary Fund (IMF) has received a formal request from the Pakistani government to postpone energy bills for three months for people living in flood-affected areas.

Prime Minister Shehbaz Sharif ordered the action as millions of people in Punjab and Sindh struggle with the destruction brought on by the recent floods.

Before making a decision, the IMF has requested comprehensive flood damage data, according to Finance Ministry officials. This week is the deadline for the Power Division to deliver the required data.

In areas affected by flooding, where people have already lost their houses, crops, and livestock, the request aims to temporarily halt power bill payments.

Suggestions for consideration

According to officials, the government is examining a number of relief initiatives. These include creating a distinct flood relief package and providing assistance through the Benazir Income Support Program (BISP).

An agricultural emergency has already been proclaimed by the government, and a special package of assistance for farmers is anticipated to be announced shortly.

Damage from flooding throughout Punjab

Large areas of land have been drowned by severe floods in the Chenab, Ravi, and Sutlej rivers, forcing millions of people to relocate and leaving families without a place to live.

Gujarat, Gujranwala, Sialkot, Narowal, Muzaffargarh, Multan, and Bahawalpur are now the districts most severely affected. Standing crops on 1.32 million acres of farms have been flooded, and over 6,500 animals have died.

Officials point out that the full magnitude of crop losses won’t become apparent until floodwaters subside, despite the government’s declaration of an agriculture emergency.

Economic pressure and IMF involvement

By the third week of September 2025, the IMF delegation is expected to reach Pakistan. Given the magnitude of the losses, the Finance Ministry is examining ways to request a modification of the main budget surplus and provincial cash surplus requirements.

RELATED: On September 25, an IMF mission is anticipated to travel to Pakistan.

A farmer support package, based on relief operations after the 2022 floods, is also being prepared by officials to aid in the reconstruction of rural areas.

Impact of the NDMA briefing on the food supply

Federal secretaries were informed on monsoon damage and ongoing relief operations during a visit to the National Emergencies Operation Center (NEOC) at NDMA headquarters this week.

Prices for necessities have increased as a result of floods disrupting supplies of perishable commodities. The Pakistan Bureau of Statistics (PBS) reports that during the week ending September 11, 2025, inflation increased by 5.03% on an annual basis.

Tomatoes (91%), sugar (29.3%), wheat flour (18.7%), legumes (15%), and meat (12%) saw the biggest price increases. The Punjab government’s corrective actions, however, caused a 10% decrease in wheat flour costs, which somewhat reduced weekly inflation.