Thursday, 21 November 2024
Trending
International Monetary Fund Demands from Pakistan
FINANCE

IMF demands closure of Bank Accounts of public sector entities

The International Monetary Fund (IMF) has placed a condition on Pakistan to close all the bank accounts maintained by public sector entities and the defence ministry in commercial banks. The money should be transferred to the central bank’s account.

The purpose of demand is to brought back hundreds of billions of amounts under the government’s control that are currently hold with the commercial banks in violation of various instructions by the finance ministry.

According to The Express Tribune one of the reasons behind a delay in reaching a staff-level agreement was the IMF’s insistence to roll out the treasury single account –II system within this fiscal year.

The finance ministry sources said that there were roughly 50,000 bank accounts maintained by the defence ministry, the armed forces and public sector entities including the Oil and Gas Development Company Limited (OGDCL) and National Highway Authority (NHA) that have to be closed under the second phase of the financial management reforms. Pakistan wants one more year to close these accounts, but the IMF is not willing to extend the date.

See also  Rupee Continues to weaken against dollar

The sources said the government had offered to close these accounts by February next year. Finance Adviser Shaukat Tarin did not reply to the question whether or not Pakistan had agreed to the February 2022 deadline. The finance ministry spokesman also did not respond until the filing of this story.

According to news published in “The Express Tribune”, in the first phase, the commercial bank accounts of the government ministries and attached departments had to be closed by May 2021. However, only 4,500 of the 6,000 of these accounts could be closed and a balance of about Rs5 billion was transferred to the Federal Consolidated Fund. Even some major accounts maintained by the Motorway Police, Anti-Narcotics Force, the Customs Department and the Petroleum Division could not be closed by May this year.

tax accounting services top tax consultants lahore pakistan
Ads:
Newsletter
Subscribe Now

Sign up for  Daily Digest and get the best of News for you.

[contact-form-7 id="11414" title="Contact form 1"]

Tax.net.pk - Your Tax Experts and Consultants

Welcome to Tax.net.pk

Providing Expert Tax Services for Individuals and Businesses

About Us

At Tax.net.pk, we are dedicated to providing comprehensive tax solutions tailored to meet the needs of individuals and businesses. With years of experience in the industry, our team of tax experts is equipped to handle various tax matters, including tax planning, preparation of tax returns, and compliance.

We strive to stay up-to-date with the latest tax laws and regulations, ensuring that our clients receive accurate and reliable advice. Our commitment to client satisfaction and our in-depth knowledge of the tax landscape make us the trusted choice for all your tax-related needs.

Contact Us

For inquiries or to schedule a consultation, please reach out to us: