Pakistan commits to moving public funds into TSA

Islamabad has witnessed a key development in fiscal management as the Ministry of Finance acknowledged that nearly Rs1 trillion in public funds is currently held in commercial bank accounts by state-owned entities. Following this disclosure, Pakistan has assured the International Monetary Fund (IMF) that it will bring an additional 70 public sector entities’ accounts under the Treasury Single Account (TSA) framework.

According to official sources, these 70 accounts collectively hold around Rs290 billion, which will be gradually transferred into the centralised government system to enhance financial transparency and control. Previously, about Rs200 billion from 242 accounts had already been integrated into the TSA.

The IMF has been closely monitoring funds held outside the TSA and has urged Pakistani authorities to end the longstanding practice of keeping public money in commercial banks. Experts believe that consolidating these funds will improve fiscal discipline and strengthen oversight of government expenditures and resources.

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Meanwhile, members of parliament have expressed concern over the incomplete implementation of the Public Finance Management Act 2019. Senator Anusha Rahman highlighted the lack of a clear definition for state-owned enterprises (SOEs), raising questions during a recent parliamentary committee meeting.

Finance Ministry officials faced tough questioning during the session and admitted that large sums remained outside the TSA system. In response, the ministry has informed the IMF in writing that Pakistan will continue consolidating public funds and adopt a legal framework to identify entities required to comply with TSA rules, instead of conducting a sectorisation study.

This move is being seen as a significant step towards strengthening Pakistan’s fiscal system, improving transparency, and ensuring more efficient management of public finances.