The federal government has closed the bank accounts of 66 more state-run institutions as part of the implementation of IMF conditions. The Ministry of Finance has issued a notification expanding the scope of the Single Treasury Account system.
The Single Treasury Account system has now been extended to an additional 66 public sector entities. Around Rs. 300 billion from these institutions’ bank accounts will be transferred to the national treasury.
These entities have also been prohibited from opening accounts in commercial banks. Previously, the system had already been applied to 221 government institutions, from which approximately Rs. 200 billion had been transferred to the national exchequer.
These measures have been taken under the Public Finance Management Act, which makes the Single Treasury Account system mandatory for all government departments.
Earlier, Pakistan has begun preliminary virtual talks with the International Monetary Fund (IMF) as preparations get underway for the 2026-27 federal budget, and early discussions suggest strict financial conditions may shape the upcoming plan.
According to sources familiar with the consultations, the IMF has clearly conveyed that the government should avoid granting subsidies on petroleum products in the next fiscal year. The Fund believes that fuel and energy prices must be adjusted on time to prevent additional pressure on the national budget. It has also urged authorities to promptly implement recommendations made by regulatory bodies regarding electricity and energy tariffs.
Officials involved in the talks said the IMF is pressing for limited tax exemptions and fewer concessions in the new budget. The goal is to strengthen revenue collection and improve fiscal discipline. Proposals under consideration include expanding the tax net, cutting back on sales tax exemptions, and reducing overall government spending.
