Difficulties opening letters of credit (L/Cs) are stalling the process of building infrastructure to provide universal internet access across Pakistan.

Restrictions on import L/C openings were imposed by Pakistan to keep foreign exchange reserves under tight control. The government has recently eased the restrictions, but local bankers say hard currency remains in short supply, so L/Cs will still be hard to come by (DC World News, 11 November 2022).

Internet rollout

Pakistan's ministry of information technology has been rolling out internet connections under the universal service fund (USF), which was established to bring the benefits of modern technology to all corners of the country.

The ministry is providing 1.5 million new internet connections each month, but says the lack of L/Cs is causing delays in the rollout because internet service providers are unable to import the equipment they need to establish infrastructure.

Finance ministry alerted

The delays are particularly affecting regions in the Punjab, the second largest province of Pakistan by land area and the largest province by population.

The senate standing committee on information technology and telecommunication has been informed by USF officials of the problems opening L/Cs, and is taking the matter up with the finance ministry.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.