IESCO Property Tax Bill Tops Rs1.5 Billion
The Metropolitan Corporation Islamabad (MCI) has issued a final notice over an IESCO property tax bill of more than Rs1.5 billion, warning the power utility to pay up.
The IESCO property tax dues relate to the power utility’s properties and open spaces in Islamabad, MCI officials said. The amount has built up over time despite repeated notices from the civic body.
The corporation has directed IESCO to clear the amount within the deadline set in the final notice. It has warned the company of further action if the payment is not made.
A deputy director of the MCI said the corporation had sent several notices to IESCO in the past, but the company had not settled its property tax liabilities. He said the latest notice gave IESCO a final chance to pay before the MCI moved to recover the amount.
IESCO property tax: why the bill is disputed
The demand lands in the middle of a long legal fight over the MCI’s right to levy the tax. In September 2025, the Islamabad High Court struck down the corporation’s January 2024 notification that had revised property tax rates in the capital, ruling that it had never been published in the official gazette and therefore had no legal force.
Justice Mohsin Akhtar Kayani held that the civic body could only recover property tax at the rates in force before 2018 until a valid notification was issued strictly in line with the law. The court was hearing petitions filed by Muhammad Munir Ahmed Chaudhary through Advocate Ahmed Hasan Rana.
In June 2026, the high court stepped in again, suspending a property tax bill of Rs846,398 issued to a petitioner in April 2026 and seeking replies from the federal government, the MCI and the Capital Development Authority. The petitioner had challenged a March 2024 gazette notification and argued that the MCI lacked the authority to levy the tax on the annual value of buildings and land.
The legal uncertainty cuts both ways. It gives IESCO grounds to question the bills, but it also leaves the corporation short of revenue it says it needs for municipal services in the capital.
A utility under pressure on several fronts
IESCO is one of ten state-run power distribution companies whose finances are under close watch. The government has already prequalified ten investors for IESCO’s privatisation, after the Privatisation Commission Board approved the shortlist in October.
At the same time, power distribution companies have asked the regulator for a quarterly tariff adjustment of Rs1.34 per unit from December, which would add about Rs23.3 billion to consumer bills over three months. IESCO is among the companies seeking the increase.
The capital’s power network is also in line for a major overhaul. Islamabad’s electricity poles are set to go underground within two years, under a plan announced by Interior Minister Mohsin Naqvi, as part of a wider effort to modernise the city’s power supply.
For now, neither side has said when the Rs1.5 billion will be paid, or what action the MCI will take if the deadline passes. The corporation says the final notice is its last step before recovery proceedings begin.
How much property tax does IESCO owe?
The Metropolitan Corporation Islamabad says IESCO owes more than Rs1.5 billion in unpaid property tax on its properties and open spaces in Islamabad.
What happens if IESCO does not pay?
The MCI has warned IESCO of further action if the amount is not cleared within the deadline given in the final notice, including steps to recover the dues.
Why is MCI’s property tax disputed?
The Islamabad High Court struck down the MCI’s January 2024 property tax notification in September 2025, ruling it was never published in the official gazette. In June 2026, the court also suspended a property tax bill issued to a petitioner and sought replies from the federal government, the MCI and the CDA.
Which properties does the tax cover?
According to MCI officials, the outstanding amount relates to IESCO’s properties and open spaces located in Islamabad.
