In a bid to streamline financial management and enhance transparency, the Pakistani government has decided to introduce debit cards for public sector enterprises (PSEs). The move, approved by Prime Minister Shehbaz Sharif in a recent high-level meeting, aims to address the long-standing issue of petty cash and imprest money management.
The government has opted for debit cards over credit cards for PSEs, including ministries, divisions, and state-owned enterprises. A committee led by the Finance Division has been tasked with developing a comprehensive framework for integrating the card payment system into government operations.
The committee will analyze existing procedures, evaluate the proposed debit card system, and assess its potential benefits and challenges. This initiative is part of broader efforts to enhance financial management and transparency within the government.
In a related move, the government is exploring ways to promote formal banking channels for remittances and stabilize the currency by discouraging informal methods like Hawala and Hundi. To facilitate cash-over-counter transactions, a working group comprising the Finance Division, Ministry of Commerce, State Bank of Pakistan, and Federal Board of Revenue will be formed to identify and address underlying issues.
The introduction of debit cards for PSEs is expected to improve financial discipline and reduce reliance on cash transactions, marking a significant step towards a more transparent and efficient financial management system in the government.
