Rs. 1,000 Billion Parked in Bank Accounts by SOEs Instead of Govt Fund

The Senate Standing Committee on Finance has expressed serious concern after learning that over Rs. 1,000 billion held by state-owned entities, regulators, and autonomous bodies was not deposited into the Federal Consolidated Fund, raising questions about compliance with financial laws.

The committee, chaired by Saleem Mandviwalla, was informed that more than 200 public sector entities had parked funds in commercial bank accounts, instead of transferring them to the government’s main account as required under the Public Finance Management Act 2019. Lawmakers termed this a clear violation of the law, noting that the act was passed seven years ago but has still not been properly implemented.

During the meeting, senators also raised concerns about the Securities and Exchange Commission of Pakistan, which reportedly spent Rs. 1.19 billion on perks, privileges, gratuity, and pensions with board approval, despite audit objections from the Auditor General.

Senator Anusha Rahman said the actual amount parked outside the Federal Consolidated Fund could be closer to Rs. 2,000 billion, warning that such funds were not being reflected in the government’s overall financial position.

She questioned why the Finance Ministry had not issued required notifications under the law, saying this failure had allowed entities to keep large sums outside the official system. Senators also raised concerns that the parked funds were being held in commercial banks, which in turn were lending to the government at higher rates, increasing the cost to the national exchequer.

Officials from the Finance Ministry failed to provide clear answers during the session, while Finance Secretary Imdad Ullah Bosal was not present at the meeting. Minister of State for Finance Bilal Azhar Kiani assured the committee that the issue would be taken up to ensure enforcement of the law.

Separately, the committee was informed that a digital system for asset declarations by government employees is expected to be introduced by December 2026, as part of efforts to improve transparency and oversight.