#pixel $PIXEL *April 25, 2026*, a report came from Islamabad that *the IMF has demanded the Government of Pakistan ensure all government entities deposit their funds into a "Single Treasury Account (TSA)" instead of commercial banks*.

*1. What is the IMF demanding?*

The IMF wants:

1. *All federal and provincial government entities, autonomous bodies, and corporations* to stop keeping funds in commercial banks

2. *All money to be deposited into the central Single Treasury Account (TSA) at the State Bank of Pakistan*

3. The goal is to *improve "cash management" and reduce government borrowing*

*2. What is a Single Treasury Account (TSA)?*

Aspect Money in commercial banks Money in TSA

**Control** Each entity has separate accounts, Finance Ministry doesn’t know total cash or where it is All money in one account at SBP, visible in real time

**Interest** Banks pay profit to entities Government doesn’t have to pay interest

**Borrowing** Government borrows via T-Bills even when it has cash, because money is scattered across banks With all idle cash in one place, less need for new borrowing

**Transparency** Audits are difficult, corruption risk All payments through one system, easy to track

*3. Why is the IMF asking for this?*

1. *Reduce government debt*: Pakistan’s circular debt and budget deficit are very high. TSA would give the government access to an estimated *1.5–2 trillion rupees* in idle cash currently sitting in commercial banks. This would reduce the need for new borrowing.

2. *Interest savings*: The government borrows from commercial banks at 21–22%, while its own entities’ money sits in banks. TSA would save billions in interest payments.

3. *IMF program condition*: This is a "structural benchmark" of the *$7 billion Extended Fund Facility (EFF)*. These reforms are required for loan tranche releases.

*4. Implementation status in Pakistan*

1. *Started in 2019*: TSA Phase-I included federal ministries

2. *Now Phase-II*: Must include all autonomous bodies, PSEs, authorities like NHA, CAA, WAPDA, etc.

3. *Resistance*: Many entities don’t want this