IESCO declared Rs1 billion rent defaulter

RMC seeks 65 years' rent arrears for 11 commercial properties

RAWALPINDI:

In a rare case of a federal institution defaulting on provincial government dues, the District Rent Assessment Committee (DRAC) and Rawalpindi Municipal Corporation (RMC) have determined that the Islamabad Electric Supply Company (IESCO) owes Rs1 billion in unpaid rent.

On the directions of the administrator and Rawalpindi commissioner, IESCO has been asked to pay the outstanding amount within 15 days for the continuous use of 11 MCR-owned commercial properties in Rawalpindi for the past 65 years.

According to officials, the properties have been under IESCO's use since January 1, 1961, without any rent agreement or payment.

A joint rent assessment by DRAC and MCR calculated arrears from January 1961 to November 2025, applying a rate of Rs2.5 per square foot with a 10 per cent annual increase.

In a letter issued by Administrator MCR and Commissioner Rawalpindi Engineer Aamir Khattak to the IESCO Chief Executive Officer, it was stated that the utility must deposit Rs1 billion in outstanding rent into the municipal fund within 15 days.

The properties include offices, flats and a petrol pump located at Rehmanabad SDO Construction Camp, Asghar Mall complaint office, Chandni Chowk XEN RO office, Satellite Town B Block complaint office, Saidpur Road flats, Satellite Town Wapda Foundation petrol pump, Asghar Mall subdivision complaint office, Ganj Mandi subdivision complaint office, Ghazni Road Safdarabad SDO office, City Subdivision complaint office Ganj Mandi, and Committee Chowk subdivision office.

Chief Officer MCR Imran Ali said the corporation would not only recover the arrears but also sign a fresh rent agreement with IESCO to ensure regular monthly rent payments.

He added that clear instructions had been received from the Punjab government and a formal recovery process had begun under the supervision of the Rawalpindi commissioner.