Pakistan has reached a new agreement with the International Monetary Fund (IMF) under which the government will shut down approximately 70 official bank accounts and consolidate nearly Rs. 300 billion into the national treasury. The move is part of ongoing efforts to streamline public finances and strengthen overall fiscal discipline.
According to the agreement, the objective is to improve cash management across government institutions, ensure better utilization of state resources, and ultimately reduce the cost of borrowing. By bringing scattered funds under a centralized system, authorities aim to enhance oversight and limit unnecessary financial leakages.
In addition, Pakistan has pledged to extend the average maturity period of its domestic debt to four years and two months by June 2027. This step is intended to reduce refinancing pressure and create more stability in debt servicing obligations. As part of broader reforms, the government also plans to bring remaining non-interest-bearing accounts under the Treasury Single Account system, further tightening control over public funds. The IMF continues to emphasize stronger transparency measures and improved governance of government cash holdings as key conditions for sustained financial stability.
