ISLAMABAD: The Islamabad Electric Supply Company (Iesco) has informed Pakistan Post that it will stop using its services to collect electricity bills starting July 1, 2025.
According to information provided by a private newspaper, officials at Pakistan Post said Iesco sent a formal letter to their headquarters, stating that the decision aims to shift to a digital bill collection system and reduce cash-related losses.
Pakistan Post officials expressed surprise over the sudden, one-sided decision, calling it unexpected. They said although Pakistan Post has been facing losses in collecting bills for electricity, gas, telephone, and Wasa, the department continued the service to make things easier for the public.
They noted that Pakistan Post remains a trusted service, especially in rural areas. In the fiscal year 2023–24, post offices collected over 42.8 million electricity bills, including 10 million Iesco bills.
In the first 10 months of the current fiscal year (2024–25), the post offices have already collected 46.7 million utility bills, and the number is expected to exceed 55 million by the end of June.
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Consumers have also criticized Iesco’s decision, saying it ignores public convenience. While other payment options exist, many people—especially in villages—still rely on Pakistan Post.
Pakistan Post officials warned that removing this facility could cause serious problems for rural consumers, even as they continue working to digitalize their own services.
IESCO to End Bill Collection via Pakistan Post
Category | Details |
---|---|
Service Ending Date | July 1, 2025 |
Service Being Discontinued | Electricity bill collection via Pakistan Post |
Reason for Discontinuation | Shift to digital system and reduce losses in cash handling |
Letter Issued By | IESCO to Pakistan Post Headquarters |
Pakistan Post Reaction | Surprised by sudden, unilateral decision |
Iesco Faces Technical Issues Amid Heatwave, Staff Praised
In related news, Iesco’s Chief Executive Officer Muhammad Naeem Jan said that the company is struggling with increased faults due to a severe heatwave and high humidity across the region.
A press release said the rising demand for electricity has put extra pressure on the system, leading to tripping on 11kV feeders and more complaints about transformers and individual connections.
The CEO said that Iesco’s Operations, GSO, and Construction teams are working round the clock to fix issues quickly. He praised the line staff for their dedication, saying, “Our field teams are working tirelessly in extreme heat. They are our most valuable asset.” He also directed all SDOs to monitor complaint offices closely.
Budget 2025: Govt Announces Major Energy Sector Reforms
In the related development, Presenting the Budget 2025, Federal Finance Minister Muhammad Aurangzeb highlighted several reforms to improve Pakistan’s power sector.
He said the government has reduced electricity rates for industries by over 31%, and for 18 million low-income consumers by more than 50%, aiming to support economic growth and reduce inflation.
The government has also renegotiated contracts with Independent Power Producers (IPPs), resulting in expected savings of over Rs3,000 billion. Environmentally harmful furnace oil power plants with a capacity of 3,000 MW have been shut down.
Aurangzeb added that deep-rooted reforms are underway, including the privatization process of three power distribution companies—Faisalabad, Gujranwala, and Islamabad. All steps for their privatization have been completed.
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To improve transmission, the NTDC has been restructured into three separate companies that will plan and manage future projects. Professional boards are now in place for DISCOs, and political interference has been removed. These companies have already reduced their losses by Rs140 billion in just 9 months.
He said the government is committed to completely eliminating these losses in the next five years. A competitive power market is being introduced, with new laws and regulations ready for implementation within three months.
For the first time, energy-efficient building codes have been approved, and federal and provincial departments have been directed to implement them in all future construction projects.
The finance minister shared that a plan to access low-cost electricity has already saved more than Rs4,000 billion by cancelling new expensive power plants and closing down government-owned generation companies. The sale of their surplus equipment has begun to reduce the burden on the national budget.