Pakistan’s federal cabinet has approved a Rs. 10.8 billion ($39 million) package to relieve electricity costs for consumers in flood-hit areas, waiving August 2025 bills for households and easing payment terms for businesses and farms.
Cabinet flood relief for domestic consumers: August 2025 bills waived; refunds for those who already paid
Following intensive monsoon flooding and glacial melt in August–September 2025, the cabinet moved to cushion families facing loss of homes, income, and services.
As a result, all domestic consumers within officially notified flood affected zones will have their August 2025 power bills fully waived.
Moreover, households that already cleared those bills will receive refunds automatically through upcoming billing cycles.
The policy ensures relief is both targeted and cash-flow positive for the hardest hit residents.
Businesses & farms not under cabinet flood relief: August bills deferred, repaid Dec 2025–Jun 2026
While businesses and farms will not get a waiver, they will receive deferral of their August bills.
Which help businesses easing immediate pressure as they repair facilities, restore inventories, and re-enter markets.
The repayment schedule will be evenly distributed over seven months. Starting from December 2025 to June 2026, allowing enterprises to stabilise operations while avoiding a sudden cost spike.
This structure aims to preserve jobs, maintain production capacity, and support the agricultural cycle during the crucial rebuilding period across Punjab and Khyber Pakhtunkhwa.
Funding: Rs 10.8bn to CPPA-G (Rs 10.4bn waivers; Rs 464m deferrals)
To execute the plan, the cabinet approved an immediate advance subsidy of Rs. 10.8 billion to the Central Power Purchasing Agency (CPPA-G).
Of this, Rs. 10.4 billion will directly finance household bill waivers, while Rs. 464 million will offset cash-flow impacts from deferred payments by non-domestic users.
Officials say the package is designed to bridge recovery, ensuring utilities remain solvent even as relief flows to consumers.
As reconstruction gathers pace, authorities frame the decision as a targeted, time-bound measure to help families and businesses rebuild and return to normal economic activity.
