The Cash Flow Management Unit (CFMU) is established in the Finance Department to improve cash management across the Government of Khyber Pakhtunkhwa. CFMU ensures efficient treasury operations, daily visibility of government cash, and timely availability of funds for public services.
Core Responsibilities
- Prepare and monitor the Cash Management Plan
- Implement Treasury Single Account (TSA)
- Introduce Daily Sweeping of bank accounts
- Coordinate with departments, banks, AG & DAOs
- Improve cash forecasting and liquidity
- Support budget execution and releases
Key Functions
- Consolidation of public funds to avoid idle balances
- Daily sweeping of accounts at end of day
- Real time reporting of cash position
- Strengthening financial discipline
- Providing data and dashboards to CMC & Finance Department
Benefits
- Eliminates idle cash in 80,000+ bank accounts
- Reduces borrowing and interest costs
- Enhances transparency and accountability
- Improves planning and budget execution
- Follows international best Public Financial Management practices
Governance Structure
CFMU works under the oversight of the Cash Management Committee (CMC) chaired by the Finance Department. The unit has authority to request financial data from departments and banks to ensure compliance.
Activities in Progress
- Cash plans in pilot departments (Irrigation, C&W, Health, Education)
- Daily sweeping implementation with BoK, NBP & UBL
- Capacity building and master trainer program
- Expansion to all government entities in phased manner
Objective
To ensure that public funds remain available for development and service delivery, while minimizing idle balances and making the best use of government cash resources.