Pakistan has agreed with the International Monetary Fund to close around 70 government Bank Accounts and transfer nearly Rs. 300 billion to the national treasury. The move is part of broader financial reforms aimed at improving fiscal discipline and transparency.
Officials said the decision to consolidate Bank Accounts will help the government manage public funds more efficiently. By bringing scattered funds into a central system, authorities expect better control over cash flow. This step will also reduce reliance on short-term borrowing.
The agreement includes shifting remaining non-interest-bearing Bank Accounts into the Treasury Single Account system. This system allows the government to manage all funds through a unified structure. Experts believe this will improve oversight and reduce misuse of public money.
According to officials, the reform is designed to strengthen financial governance. It will also help in lowering borrowing costs. When idle funds are pooled together, the government can reduce the need to borrow at higher interest rates.
Another key part of the agreement focuses on managing public debt. Pakistan has committed to extending the maturity of its domestic debt. The target is to reach an average maturity of four years and two months by June 2027. This will reduce refinancing risks and improve long-term stability.
The IMF has consistently emphasized the need for better financial management in Pakistan. It has urged authorities to ensure transparency in handling public funds. The closure of multiple Bank Accounts is seen as a major step in this direction.
Officials said the reforms will also improve budget planning. With better data on available funds, policymakers can make informed decisions. This will support economic stability and reduce financial pressures.
The government believes these measures will strengthen trust in public financial systems. It also aims to create a more efficient structure for managing national resources. The consolidation of Bank Accounts is expected to play a key role in achieving these goals.
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Overall, the move reflects Pakistan’s commitment to meeting IMF conditions. It also highlights ongoing efforts to improve fiscal management and ensure responsible use of public funds.
