Federal government in a big economic decision may relocate government deposits worth Rs 1.9 trillion
KARACHI: Federal government in a big economic decision may relocate government deposits worth Rs 1.9 trillion to a single treasury account.
The Pakistan Tehreek-e-Insaf government, in consultation with the State Bank of Pakistan (SBP), is considering relocating the governments’ deposits worth Rs1.9 trillion from commercial banks to a single bank account at the central bank.
Speculations suggest that the International Monetary Fund (IMF) has advised the government to do so in order to avoid the alleged misuse and mismanagement of the government funds.
The decision, if and when implemented, would badly impact the commercial banks’ earnings as the government deposits remain one of the big sources of their income, according to research houses.
“The proposal to introduce Treasury Single Account (TSA) is being examined by the government in consultation with SBP as part of its agenda to reform public financial management,” the central bank said in a press statement on Wednesday. “However, no decision has yet been made to implement the TSA.”