RAWALPINDI:
In a rare case of a federal institution defaulting in payment of provincial government dues, the District Rent Assessment Committee (DRAC) and the Rawalpindi Municipal Corporation (RMC) have determined that the Islamabad Electric Supply Company (IESCO) owes Rs1 billion in unpaid rent.
On the instructions of the Administrator and Commissioner of Rawalpindi, IESCO was asked to pay the outstanding amount within 15 days for the continuous use of 11 commercial properties owned by MCR in Rawalpindi for the last 65 years.
According to officials, the properties have been under the use of IESCO since January 1, 1961, without any rental agreement or payment.
A joint rental assessment by the DRAC and MCR calculated the arrears from January 1961 to November 2025, applying a rate of Rs 2.5 per square foot with an annual increase of 10 percent.
In a letter addressed to IESCO Director General by MCR Administrator and Rawalpindi Commissioner Engineer Aamir Khattak, it was stated that the utility should deposit Rs1 billion of unpaid rent into the municipal fund within 15 days.
The properties include offices, apartments and a petrol pump located at Rehmanabad SDO Construction Camp, Asghar Mall Complaints Office, Chandni Chowk the Ganj Mandi Municipal Housing Estate Complaints Office and the Chowk Committee Housing Estate Office.
MCR Managing Director Imran Ali said the company would not only recover the arrears but also sign a new 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.
