Govt Plans Electricity Bill Relief For Flood-hit Areas

Officials familiar with matter say proposals under review include abolishing General Sales Tax (GST), the Fuel Cost (FC) surcharge and fixed charges on power bills in disaster-hit regions

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-Sept 9th, 2025) The Federal government is weighing a comprehensive relief package for flood-affected communities by removing multiple taxes and surcharges from electricity bills, sources confirmed on Tuesday.

The officials familiar with the matter said that the proposals under review include abolishing General Sales Tax (GST), the Fuel Cost (FC) surcharge, and fixed charges on power bills in disaster-hit regions.

The government is also considering ending GST and excise duty on fuel price adjustments, along with waiving income tax, additional levies, and retailer sales tax that are routinely charged in monthly bills.

The move follows widespread devastation in Punjab, where unprecedented flooding has damaged vast stretches of agricultural land and displaced hundreds of thousands of people.

The officials said the proposed relief is aimed at easing the financial burden on families and farmers already struggling with the loss of homes, livelihoods, and crops.

Political voices have also intensified calls for stronger government action.

On Monday, Pakistan People’s Party (PPP) Chairman Bilawal Bhutto Zardari demanded the imposition of an “agricultural emergency” and called for complete waiver of electricity bills for farmers.

He warned that without urgent measures, the agriculture sector could suffer irreparable losses, jeopardizing food security across the country.

Federal ministries are currently finalizing the contours of the relief plan in consultation with the Ministry of Finance and the Ministry of Energy.

Sources said the package could be announced in the coming weeks after approval from the federal cabinet.

Floods triggered by excess water flows from rivers have particularly affected southern Punjab districts, submerging villages, washing away crops, and forcing thousands to abandon their homes.

The officials fear the scale of damage may worsen in the coming days, further intensifying pressure on the government to roll out concrete relief measures.