Pakistan to Bring Rs290 Billion in State Accounts Under Treasury System, Assures IMF

3 days ago

Islamabad — Pakistan has assured the International Monetary Fund (International Monetary Fund) that it will bring dozens of government accounts holding hundreds of billions of rupees under the national treasury framework, in a move aimed at strengthening fiscal discipline and transparency.

According to official sources, the government will include around 70 new accounts containing an average of Rs290 billion in the Treasury Single Account (TSA) system, which centralizes public funds under the control of the federal treasury.

The development follows revelations from the Ministry of Finance that nearly Rs1 trillion had been parked in commercial bank accounts through state-run entities instead of being routed through the TSA mechanism.

Officials confirmed that Pakistan has committed to the IMF that it will continue consolidating cash balances held by state-owned entities and improve financial management practices.

During a recent parliamentary committee meeting, lawmakers expressed strong concern over delays in implementing the Public Finance Management Act 2019, which was designed to improve oversight of public funds.

Senator Anusha Rahman of the ruling Pakistan Muslim League-Nawaz raised concerns that state-owned enterprises were not properly defined under the law, creating loopholes in financial governance.

Finance Ministry officials admitted that approximately Rs1 trillion had been deposited in commercial bank accounts instead of being transferred to the TSA. An additional secretary acknowledged the gap during questioning by lawmakers.

In its written communication to the IMF, the Ministry of Finance said Pakistan would move toward greater fiscal consolidation by identifying entities required to comply with TSA rules through legal criteria rather than conducting a sector-wide restructuring study.

Authorities added that 242 existing accounts holding about Rs200 billion have already been brought under the TSA system, with the latest 70 accounts set to follow.