The Senate Standing Committee on Finance expressed serious concern after being informed that more than Rs. 1,000 billion held by state-owned entities, regulators, and autonomous bodies was not deposited into the Federal Consolidated Fund (FCF), raising questions over compliance with financial laws.
The committee, chaired by Senator Saleem Mandviwalla, was told that over 200 public sector entities had parked funds in commercial bank accounts instead of transferring them to the government’s main account, as required under the Public Finance Management (PFM) Act 2019. Lawmakers described the practice as a clear violation of the law, noting that although the legislation was enacted seven years ago, it has yet to be fully implemented.
During the meeting, senators also raised concerns over the Securities and Exchange Commission of Pakistan (SECP), which reportedly spent Rs. 1.19 billion on perks, privileges, gratuity, and pensions with board approval despite audit objections raised by the Auditor General.
Senator Anusha Rahman said the actual amount parked outside the Federal Consolidated Fund could be closer to Rs. 2,000 billion, warning that such funds were not being reflected in the government’s overall fiscal position. She questioned why the Ministry of Finance had failed to issue the required notifications under the law, alleging that the lapse had allowed entities to retain large sums outside the official financial system. Senators also noted that funds kept in commercial banks were effectively being used for lending back to the government at higher interest rates, increasing the cost to the national exchequer.
Officials from the Ministry of Finance were unable to provide satisfactory answers during the session, while Finance Secretary Imdad Ullah Bosal was not present. Minister of State for Finance Bilal Azhar Kiani assured the committee that the matter would be taken up to ensure enforcement of the law.
Separately, the committee was informed that a digital asset declaration system for government employees is expected to be introduced by December 2026 as part of broader efforts to improve transparency and oversight.
