PM Shehbaz extends FCA exemption to consumers using 300 units of electricity

Prime Minister Shehbaz Sharif on Thursday announced to extend the exemption for fuel charge adjustment (FCA) in August’s electricity bills to consumers who use under 300 units, Aaj News reported.

Previously, the exemption applied only to consumers using 200 units of electricity or less.

While addressing a meeting of PML-N lawmakers in Islamabad, the premier said: “This [revised exemption] will cover 75 percent of the consumers across the country.”

PM Shehbaz announces waiving fuel charge adjustment for 17mn power consumers

“In the first stage, power users consuming 200 units [or below] were given an exemption and the government was bearing a burden of Rs21 billion [for that]. But it only covered 48pc or 52pc of the users.

“I believe that this [waiver] will matter once we increase it to 300 units,” he said.

During the occasion, the premier recalled that when his government came to power, it faced a host of problems.

“We were only able to stand back on our feet after the IMF (International Monetary Fund) programme,” he said.

Talking about the latest increase in petroleum products, PM Shehbaz said that the "decision was taken because of fuel adjustment charges."

Stressing the significance of the IMF programme, PM Shehbaz said that "Pakistan was saved from default."

However, the premier argued that the resumption of the bailout package does not need to be celebrated. “It is not a good thing because Pakistan is taking more debt. But at least we were saved from a default which is what Imran Khan wanted," he said.

SBP says it has received proceeds of $1.16bn after IMF board approval

Earlier this week, Finance Minister Miftah Ismail announced that the IMF had approved the revival of the Extended Fund Facility (EFF) for Pakistan, paving the way for an inflow of $1.17 billion.

"We should now be getting the 7th & 8th tranche of $1.17 billion. I want to thank Prime Minister Shehbaz Sharif for taking so many tough decisions and saving Pakistan from default. I congratulate the nation," he said.

Yesterday, the State Bank of Pakistan (SBP) said that it has received proceeds of $1.16 billion from the International Monetary Fund (IMF) after the global lender approved the revival of the Extended Fund Facility (EFF) for Pakistan.

In a Twitter post, the central bank said: "Today, SBP has received proceeds of USD 1.16 billion (equivalent of SDR 894 million) after the IMF Executive Board completed the combined seventh and Eight review under the Extended Fund Facility (EFF) for Pakistan."

It further said that the inflow of funds will help improve SBP’s foreign exchange reserves and will also "facilitate the realization of other planned inflows from multilateral and bilateral sources."