In a rare case of a federal institution defaulting on provincial 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 Rawalpindi commissioner and the MCR administrator, authorities have asked IESCO to clear the outstanding amount within 15 days for the continuous use of 11 municipally owned commercial properties in Rawalpindi for the past 65 years.
Officials said IESCO has been occupying the properties since January 1, 1961, without any formal rent agreement or payment.
A joint rent assessment conducted by DRAC and MCR calculated arrears from January 1961 to November 2025, applying a rate of Rs 2.5 per square foot with a 10 percent annual increase.
In an official letter to the IESCO chief executive officer, Rawalpindi Commissioner, and MCR Administrator Engineer Aamir Khattak directed the utility to deposit the outstanding amount into the municipal fund within the stipulated period.
The properties include offices, flats, and a petrol pump located at multiple sites, including Rehmanabad, Asghar Mall, Chandni Chowk, Satellite Town, Ganj Mandi, Safdarabad, Saidpur Road, and Committee Chowk.
Chief Officer MCR Imran Ali said the corporation would recover the arrears and sign a fresh rent agreement with IESCO to ensure regular monthly payments in the future.
He added that the Punjab government has issued clear instructions and that the recovery process is underway under the supervision of the Rawalpindi commissioner.