In a strategic move to streamline financial operations, the government has decided to issue debit and credit cards to public sector enterprises (PSEs) to address petty cash and imprest money issues. The decision was made during a recent high-level meeting chaired by Prime Minister Shehbaz Sharif.
Participants of the meeting concurred that debit cards, rather than credit cards, should be employed to meet the petty cash and imprest money needs of PSEs, including various ministries, divisions, state-owned enterprises, and other government departments.
The government has established a committee, led by the Finance Division, to evaluate the integration of a card payment system into government services. This committee will review existing payment procedures, propose debit card payment processes, assess the advantages and disadvantages, and consider regulatory requirements. A comprehensive report will be compiled and submitted to the Prime Minister for a formal decision.
Sources disclosed that the matter was also discussed at a meeting of the Special Investment Facilitation Council (SIFC). All participants agreed on introducing the system to facilitate the immediate cash needs of state-owned enterprises.
During the meeting, it was highlighted that the government is exploring mechanisms for the securitisation of remittances and currency stabilisation. Efforts are underway to establish effective mechanisms to incentivise the use of formal banking channels for the inflow and outflow of foreign exchange, with recommendations for a future framework aimed at currency stabilisation currently being developed.
At present, informal channels for foreign currency flows, such as Hawala and Hundi, are still prevalent, even among overseas Pakistanis. The government aims to eliminate these informal channels by promoting formal networks through incentives. Additionally, efforts are being made to restore the cash-over-counter facility.
The Finance Division is set to form a working group comprising the Ministry of Commerce, the State Bank of Pakistan, and the Federal Board of Revenue. This group will ensure the restoration of the cash-over-counter facility at National Bank of Pakistan (NBP) branches and booths at border crossings. The group will identify underlying issues and provide updates at the next Economic Coordination Committee (ECC) meeting, with a report due within two weeks.
