Key Takeaways
- IMF has requested details on the Rs. 853 billion discrepancy in government accounts.
- The mismatch includes Rs. 448 billion in federal and Rs. 266 billion in Punjab accounts.
- The Finance Ministry has assured the IMF of providing additional information.
The International Monetary Fund (IMF) has requested an explanation for a reported Rs. 853 billion discrepancy in the accounts of the federal and provincial governments of Pakistan, according to a statement from ProPakistani.
Of the total mismatch, Rs. 448 billion was recorded in the federal government accounts, while Punjab reported a gap of Rs. 266 billion.
Government officials have provided several reasons for the discrepancy, including provincial investments in treasury papers, cash withdrawals made before the end of June, and expenses recorded after the financial year ended.
Punjab officials stated that the Rs. 266 billion mismatch was also due to differences between money coming into and leaving commercial accounts, as well as differences in federal and provincial accounting methods.
The delayed release of development funds was another contributing factor, as many cheques were issued before June 30 but the actual money was withdrawn after the end of the financial year.
The incomplete rollout of the treasury single account was also cited as a reason for the mismatch, as several government entities and authorities have not yet moved their funds into the single account.
The Finance Ministry has assured the IMF that it will provide additional information to explain the Rs. 853 billion difference, emphasizing that the mismatch will not affect the government’s reported primary budget surplus of 2.9 percent of GDP.
Pakistan expects the current IMF review talks to conclude on October 7.
