Pakistan’s Ministry of Finance (MoF) has advised its Ministry of Defence Production (MoDP) to seek the approval of the Economic Coordination Committee (ECC) or Cabinet for establishing a Defence Credit Line Facility of $50 million for Sri Lanka.
According to Pakistan media, the Ministry of Defence Production has been instructed to seek ECC approval before starting negotiations and finalizing terms and conditions.
During his visit to Sri Lanka from 23-24 February 2021, Pakistan Prime Minister Imran Khan announced a Defence Credit Line of $ 50 Million for Sri Lanka to enhance bilateral Defence and Security cooperation.
In pursuance of the Pakistani Prime Minister’s commitment to the Sri Lankan Government, a draft MoU regarding the Defence Credit Line facility was prepared and shared with Pakistan’s Ministries of Foreign Affairs, Finance, and Economic Affairs Division.
Pakistan media reported that the country’s Ministry of Foreign Affairs has concurred with the draft. Currently, the MoU is in process of vetting by the Economic Affairs Division and Finance Division.
It further reported that in a recent development; however, the MoDP has been advised by the Finance Division to obtain principle approval of ECC/ Cabinet for the opening of Defence Credit Line Facility of$ 50 million for Sri Lanka, before engaging in negotiations with the bilateral partner. (NewsWire)