In an unprecedented move, the government has created a condition for all defence imports requiring a pre-approval of the ministry of finance.
A ministry of finance official said that the administration took the extraordinary step due to deteriorating exports and foreign exchange reserves.
The deteriorating economy has begun to affect the country’s defense as well. As a result, the finance ministry altered its policy and standard operating procedures for defense imports. As a result, before opening a letter of credit (LC) for imports against the regular defense budget, the finance ministry’s foreign finance wing must give clearance.
Pakistan is taking steps to maintain the currency stable versus the dollar, and thousands of importers and company LCs are pending.
