Official Defence Imports Tied To Approval From Finance Ministry

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As a result of the deteriorating state of the economy, the current administration has tied defence imports to approval from the finance ministry.

The administration has taken this unusual step in response to a worsening external sector, including a steady decline in exports and foreign currency reserves.

In view of the country’s dwindling foreign currency reserves, the finance ministry reportedly altered its standards for defence purchases. They also said that a letter of credit (LC) for imports against the normal defence budget would need to be approved by the foreign finance division of the finance ministry.

Pakistan is adopting a number of steps to maintain the value of the rupee against the dollar, and thousands of LCs from businesses and importers are now held up in the process.

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