Govt announces 300 units electricity cap for FCA exemption

• PM Shehbaz says 75% of consumers have been exempted from fuel cost adjustment.
• Earlier, govt announced only those households consuming electricity up to 200 units will be exempt from FCA. 
• PM says FCA was increased in March due to hike in fuel prices.

ISLAMABAD: Prime Minister Shehbaz Sharif Thursday announced the exemption of fuel charges adjustment (FCA) for households consuming up to 300 units of electricity.

Addressing PML-N's National Assembly and Provincial Assembly members, the prime minister took a dig at the former government and said that it destroyed the economy by reducing the prices of petroleum products through subsidies. 

Earlier, the federal government announced that only households that consume electricity up to 200 units will be exempt from FCA. 

PM Shehbaz said that 75% of the consumers have been exempted from the FCA, adding that it was increased in March due to a hike in fuel prices. 

"The incumbent government represents all the political parties of Pakistan," said the prime minister. 

Talking about the previous government, the premier said that it allowed the export of sugar so it could earn dollars and also subsidised it. "By proving subsidies worth billions of rupee, the previous [PTI-led] government has embezzled hard-earned money of the Pakistanis," he added. 

He continued to berate the Imran Khan-led government and said that it exported wheat first and then imported it at higher prices, adding that the former government did not buy liquefied natural gas (LNG) when it was being sold at cheaper rates during the COVID-19 pandemic.

The prime minister said that the current government had to buy fuel at higher rates because of the Russia-Ukraine war, however, "we provided the consumers with electricity at lower rates."

Shedding a light on the International Monetary Fund's (IMF) deal, PM Shehbaz said that the current government did not make any commitments with the fund. "IMF told us to fulfil the conditions of the previous governments," he added. 

The premier said that it was one of the conditions of the IMF that the provinces write a letter to the federal government, assuring them of a budget surplus during the fiscal year. 

He said that this should be the last IMF programme if the nation wants to stand on its own feet. "We still fear that the agreement with IMF may break," added PM Shehbaz.