Govt Moves to Bring More Public Funds Under Treasury Single Account

Pakistan is expanding its Treasury Single Account (TSA) framework as part of an effort to strengthen transparency, fiscal discipline, and digital governance across the public sector, according to a Finance Ministry notification.

The Finance Ministry said the reform is aimed at improving public financial management by consolidating government financial resources under a centralized arrangement linked to the federal consolidated fund.

Under the Public Finance Management Act, 2019, the Treasury Single Account system allows the government to manage receipts and payments through a unified structure to improve cash management, reduce inefficiencies, and enhance financial oversight.

Officials said the government has already brought 221 public entities under the TSA framework, including divisions, authorities, regulators, universities, and public sector organizations. Another 66 entities have now been identified for inclusion in the next phase of the sweeping arrangement.

The Finance Ministry said the initiative is being implemented in coordination with the State Bank of Pakistan and the Controller General of Accounts while keeping operational sensitivities and institutional autonomy in view.

According to the notification, the 2024 Cash Management and Treasury Single Account Rules introduced a “sweeping arrangement” under which surplus funds lying in bank accounts are transferred to the federal consolidated fund at the close of banking hours and returned before the start of the next business day.

Authorities said the expansion of the TSA framework will mainly focus on current accounts of public entities, except for organizations related to defense and security or those specifically exempted under the law.

The Finance Ministry also linked the reform with the government’s broader “Cashless Economy” initiative aimed at digitizing government payments and receipts, including salaries, pensions, taxes, utility bills, and social protection transfers.

Officials said the government also plans to open sub accounts for public entities at the State Bank of Pakistan to manage receipts and payments digitally, reducing reliance on commercial bank accounts and supporting greater financial transparency and accountability.