Pakistan to Close 70 Government Bank Accounts, Transfer Rs300 Billion to National Treasury

Islamabad: Pakistan has decided to close around 70 bank accounts of government institutions and transfer approximately Rs300 billion to the national treasury under commitments made with the International Monetary Fund (IMF), officials said.
The move is part of a broader agreement under the recently concluded staff-level deal with the IMF and aims to consolidate public financial resources and reduce borrowing costs.
According to sources in the Ministry of Finance, around 242 accounts had already been closed earlier, with nearly Rs200 billion transferred to the Treasury Single Account (TSA). Officials said a total of about 250 additional non-saving accounts are planned for closure, holding nearly Rs400 billion in funds.
In the first phase, 70 accounts belonging to ministries and their attached departments will be shut down. The IMF has maintained that several government entities keep funds in commercial banks to earn profit, while the same funds are later borrowed back by the government at higher interest rates.
However, the Ministry of Finance has expressed caution regarding fully restricting autonomous bodies, stating that doing so could impact their financial independence. A partial exemption is likely for institutions that do not rely on the federal budget.
In the next phase, ministries and divisions are expected to close their savings accounts as well. Meanwhile, concerns have also been raised by the Senate Standing Committee on Finance, which noted that nearly 200 public entities and regulatory bodies are holding over Rs1 trillion in private bank accounts, potentially violating the Public Finance Management Act 2019.
Pakistan has also assured the IMF that it will extend the average maturity period of domestic debt to four years and two months by June 2027, aiming to reduce refinancing risks. The average maturity period, which was around 2.5 years at the start of the programme, has already improved to about 3.5 years.
The Ministry of Finance said the government is continuing efforts to strengthen domestic debt management, broaden the investor base, and gradually reduce borrowing from the State Bank of Pakistan.