ISLAMABAD: Following the admission that nearly Rs1 trillion has been parked in commercial bank accounts through government entities, Pakistan has assured the International Monetary Fund that it will bring around 70 additional government accounts into the Treasury Single Account (TSA) framework.
According to sources in the Ministry of Finance, these accounts hold an average of Rs290 billion, and the move reflects IMF scrutiny over public funds kept outside the TSA system, with emphasis on ending the longstanding practice of keeping government money outside central financial controls.
Lawmakers have also expressed strong concern over the non-implementation of the Public Finance Management Act 2019.
During a recent parliamentary committee meeting, Senator Anusha Rahman of the ruling Pakistan Muslim League-Nawaz raised concerns over the absence of a clear definition of state-owned enterprises (SOEs) in the law. When questioned by senators, senior officials from the Finance Ministry acknowledged that around Rs1 trillion had been deposited in commercial bank accounts instead of being routed through the TSA.
The Finance Ministry has formally informed the IMF that Pakistan will continue efforts to consolidate public funds for improved financial discipline. Instead of conducting a sectorisation study, the government will adopt legal standards to identify entities required to comply with TSA rules.
Currently, 70 new accounts holding approximately Rs290 billion will be brought under the TSA system, while 242 existing accounts already covering Rs200 billion have been included.
