Islamabad December 14 2022: Government has agreed with the IMF to implement TSA, there is no end-December 2022 deadline to close all commercial bank accounts maintained by public sector entities and Ministry of Defence and transfer money to the State Bank of Pakistan, according to Ministry of Finance.
Finance Division with the technical support of the International Development Partners including IMF has undertaken significant structural reforms in the field of public financial management in the Federal Government.
Implementation of Treasury Single Account (TSA) is one of such reforms where the IMF has been providing comprehensive Technical Assistance for capacity building, design, scope and execution in line with the International Best Practices.
The IMF draft report has acknowledged major strides made by the Government of Pakistan in the implementation of challenging public financial management reforms including TSA.
Owing to the complexities involved in the implementation process, the IMF team has proposed various models and timelines for TSA. Finance Division is in the process of evaluating these proposed models and timelines in consultation with all stakeholders.
While the Government has agreed with the IMF to implement TSA, there is no end-December 2022 deadline to close all commercial bank accounts maintained by public sector entities and Ministry of Defence and transfer money to the State Bank of Pakistan. Further, no commitment has ever been by Government of Pakistan with IMF to close all commercial bank accounts maintained by the Public Sector Entities including OGRA and NHA.
Complete information is available with the State Bank of Pakistan with regard to all the commercial bank accounts maintained by the federal as well as provincial government entities/organizations.
The commercial banks have been sharing full data with the SBP as per the provisions of the PFM Act, 2019.
The implementation of TSA in all the Public Entities of the Federal Government is an ongoing process involving extensive consultations on scope, design, accounting, banking arrangements and IT infrastructure.
