The provincial government of Punjab has raised the ceiling of its Cash Management Fund fivefold, from Rs200 billion to Rs1,000 billion, for the current fiscal year 2026-27.
As per media reports, the Punjab finance department confirmed the earlier limit stood at Rs200 billion and said the federal government has already been informed of the revised ceiling.
Under the expanded fund, all surplus funds held by government departments will be deposited into a single pool rather than remaining idle. Officials said this will reduce the need for the government to borrow at high interest rates and will strengthen the provinces overall cash flow.
The finance department said the move is expected to lower interest costs while ensuring that funds for public welfare projects are released on a priority basis. It added that the change will also improve financial discipline and increase profit generated after net cash payments.
Officials also added that the increased fund limit is designed to let the provincial government funds generate income rather than sit unused.
