Cash Flow Management Unit (CFMU)

Cash Flow Management Unit (CFMU)

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
  • Implementation of Daily Sweeping Mechanism under the Treasury Single Account (TSA) framework
  • Coordination with administrative departments for preparation and submission of Cash Plans at DDO/PAO’s level
  • Verification and classification of government bank accounts (active, inactive, dormant, exempted)
  • Initiation of closure process for inactive and dormant government bank accounts
  • Engagement with Government departments for operationalization of daily sweeping
  • Collaboration with Government departments on cash management reforms
  • Coordination with State Bank of Pakistan for Provincial Account-I operations and cash visibility
  • Liaison with commercial banks for operational readiness and account reconciliation
  • Capacity building of departmental officers on cash planning and TSA compliance
  • Monitoring of implementation progress in line with Cash Management Policy 2025
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.

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