Govt Bank Accounts Closure Rs 300 Billion Moved to Treasury
Pakistan has approved a major govt accounts closure plan. The decision follows an agreement with the IMF. As a result, around 70 bank accounts will close soon. In addition, nearly Rs300 billion will move to the national treasury. This step aims to centralize public funds. Therefore, the government expects lower borrowing costs.
Why This Decision Matters
Officials say the move will improve financial discipline. Previously, many departments kept funds in private banks. However, those same funds were later borrowed at higher interest rates. For example, earlier phases already closed 242 accounts. As a result, about Rs200 billion shifted to the Treasury Single Account. This shows steady progress.
More Closures Ahead
The finance ministry plans further action. Around 250 more non saving accounts may close soon. These accounts hold nearly Rs400 billion. In the first phase, ministries and attached departments will act. Later, divisions may also close saving accounts. However, some autonomous bodies may get limited exemptions.
Concerns and Future Strategy
Some officials remain cautious. Full restrictions could affect financial independence. Therefore, the government may allow flexibility for certain institutions.
Meanwhile, the Senate committee has raised concerns. Many public entities still hold large funds in private accounts. This practice may violate financial laws. Looking ahead, Pakistan aims to extend its debt maturity period. The target is four years and two months by 2027. As a result, refinancing risks may be reduced.
In addition, the government plans to broaden its investor base. It will also gradually reduce reliance on central bank borrowing. Overall, these steps support stronger financial stability.
