RAWALPINDI: The Rawalpindi Municipal Corporation has formally called on the Islamabad Electric Supply Company to settle more than Rs1 billion in unpaid rent for municipally owned commercial properties that IESCO has been using for over six decades. A joint assessment by the District Rent Assessment Committee and RMC determined that the utility has defaulted on rent obligations dating back to 1961.
Chief Municipal Officer Imran Ali said that RMC has issued a letter, endorsed by Commissioner Rawalpindi Amir Khattak, directing IESCO to deposit the outstanding amount into the municipal fund within fifteen days. The demand follows a detailed evaluation of 11 properties occupied by the power distribution company without a formal rent agreement or payments since January 1, 1961.
Officials explained that the arrears were calculated from January 1961 to November 2025 by applying a base rent rate of Rs2.5 per square foot with a ten percent annual increase. The total sum due now stands at approximately Rs1 billion, a rare case of a federal institution defaulting on long standing dues owed to a municipal authority.
The properties in question include offices flats and a petrol pump located at various strategic locations across Rawalpindi, such as Rehmanabad SDO Construction Camp Asghar Mall complaint office Chandni Chowk XEN RO office Satellite Town offices Saidpur Road flats Ganj Mandi subdivision and Committee Chowk facilities.
Imran Ali said RMC plans not only to recover the outstanding arrears but also to sign a fresh rent agreement with IESCO to ensure regular monthly payments moving forward. He added that clear directives have been issued by the Punjab government and the recovery process is underway under the supervision of the Rawalpindi commissioner.
The development highlights broader issues regarding long unresolved dues between utility providers and local governments. If IESCO fails to comply with the demand within the stipulated timeframe the corporation could face further administrative actions, including potential legal measures to enforce the settlement.
