ISLAMABAD, 25 October 2021, (TON): 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 demand is aimed at bringing back hundreds of billions of rupees under the government’s control that are currently placed with the commercial banks in violation of various instructions by the finance ministry.

Sources told media that 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 global lender also wanted that instead of promulgating a presidential ordinance, the government should introduce a finance bill in parliament to withdraw tax exemptions and slap more taxes.

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.

The IMF wants a framework to be put in place by December this year to close all the remaining commercial bank accounts that are funded through government money.