The Pakistani government is considering setting up one account named Treasure Single Account (TSA). It will strengthen financial command. As the government deposits are maintained by different banks, now they will be maintained by just State Bank of Pakistan (SBP).
A meeting was held between the central bank and the other bank representatives to brief them about the mechanism of Treasure Single Account.
The other banks have been asked to provide the feedback to SBP by end of April regarding this initiative.
State Bank of Pakistan stated, “While the proposal to introduce TSA is being examined by the Government of Pakistan in consultation with SBP as part of its agenda to reform public financial management, however, no decision has yet been made to implement the TSA.”
Adding. “Any decision in this regard will be taken after due consultation with all the stakeholders and assessing its impact on the banking industry. It will, therefore, be premature to form any opinion about the proposed policy decision and thus the market players should avoid engaging in any speculative activities based on this proposal which is still under examination.”
The deposits of the government with commercial banks is estimated to be almost Rs. 1.9 trillion or 13.7% of total deposits. Out of this Rs. 0.9 trillion belongs to the federal government while the rest belongs to the provincial governments.