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