Pakistan has agreed to close 70 government bank accounts and transfer nearly Rs300 billion to the national treasury as part of fiscal reforms under its $7 billion programme with the International Monetary Fund.
According to officials, the first phase will involve shifting non-interest-bearing accounts of ministries and attached departments into the Treasury Single Account (TSA), adding to 242 accounts already moved with balances of around Rs200bn.
The government plans to eventually transfer up to Rs400bn into the Federal Consolidated Fund by closing all non-saving accounts, a move aimed at improving cash management, consolidating public funds and reducing borrowing costs.
In the next stage, authorities will begin closing saving accounts of ministries and departments, although autonomous bodies not dependent on federal budget funding may be allowed to retain their accounts.
The finance ministry is also preparing a framework to set timelines for account closures and fund transfers in line with the Public Finance Management Act and TSA rules.
As part of the agreement, Pakistan has also committed to reducing refinancing risks by extending the average maturity of domestic debt to four years and two months by June 2027, up from around two and a half years at the start of the programme.
Officials said the reforms are designed to centralise government cash balances and strengthen fiscal discipline under the IMF-backed programme.
