Pakistan is expanding its Treasury Single Account (TSA) framework as part of broader efforts to strengthen transparency, fiscal discipline, and digital governance across the public sector, according to a Finance Ministry notification.
The Finance Ministry said the reform aims to improve public financial management by consolidating government financial resources under a centralized system linked to the federal consolidated fund.
Under the Public Finance Management Act, 2019, the Treasury Single Account system enables the government to manage all receipts and payments through a unified structure, improving cash management, reducing inefficiencies, and enhancing financial oversight.
Officials said the government has already brought 221 public entities under the TSA framework, including government divisions, regulatory authorities, universities, and various public sector organizations. An additional 66 entities have now been identified for inclusion in the next phase.
The Finance Ministry stated that the initiative is being implemented in coordination with the State Bank of Pakistan and the Office of the Controller General of Accounts, while considering operational sensitivities and institutional autonomy.
According to the notification, the 2024 Cash Management and TSA Rules introduced a “sweeping arrangement” under which surplus funds in government bank accounts are transferred to the federal consolidated fund at the end of banking hours and returned before the next business day begins.
Authorities said the expansion will primarily cover current accounts of public entities, excluding organizations related to defence and security or those exempted under law.
Officials linked the reform with the government’s broader “cashless economy” initiative, which aims to digitize government payments and receipts, including salaries, pensions, taxes, utility bills, and social protection transfers.
They further said plans are underway to establish sub-accounts for public entities at the State Bank of Pakistan to manage funds digitally, reduce reliance on commercial bank accounts, and enhance transparency and accountability in public finance management.
