In the middle of the nonstop devaluation of the rupee and a disconcerting economic crisis, the federal government on Wednesday made the decision to ban imports of non-essential and luxury items.
According to a local media report, Prime Minister Shehbaz Sharif banned the import of non-essential items that are not being utilized by the common man. The decision is said to be crucial towards controlling the flight of the dollar.
The reports said that the prime minister has also placed a ban on the import of luxury vehicles.
They further added that the decision was made because of the increasing trade deficit. After holding consultations with his coalition partners, PM Shehbaz made the decision that the government would take tough decisions to stabilize the economy.
The US dollar has seen a record surge over the last few weeks. The greenback was being traded today in the open market at over Rs200. Hinting at a lack of confidence among the traders.
In another development, the government has initiated talks with the International Monetary Fund today in order to restart the $6 billion loan program. The talks are taking place in the Qatari capital Doha, the Ministry of Finance said, and are anticipated to continue into next week.
