ISLAMABAD: In a significant effort to cut federal expenditures, Pakistan’s government has announced plans to eliminate approximately 150,000 vacant positions across 43 ministries and their affiliated departments. This reduction will be implemented in phases to streamline operations and enhance budget efficiency.
Before June 30 of this fiscal year, the entire process will be completed, encompassing all 42 ministries—excluding the already dissolved CADD—along with their associated departments. Recommendations will be finalised and put into action during this timeframe.
During a press briefing on Tuesday, Federal Minister for Finance and Revenue, Muhammad Aurangzeb, unveiled the six-month progress report of the High-powered Committee on Rightsizing the Federal Government.
He highlighted that under Wave-1, six ministries were successfully addressed, including Kashmir Affairs and Gilgit Baltistan, SAFRON, Information Technology and Telecom, Industries and Production, National Health Services Regulations and Coordination, and the Capital Administration and Development Division (CADD).
The minister announced that the committee has opted to merge the Ministries of Kashmir Affairs and Gilgit-Baltistan with the States and Frontier Regions (SAFRON). Also, the Capital Administration & Development Division (CADD) has been dissolved. He noted that the number of entities linked to these ministries has been slashed from 80 to 40.
The minister was accompanied by the Convener of the National Parliamentary Taskforce on Sustainable Development Goals (SDGs), Bilal Azhar Kayani and Ambassador at Large Dr. Salman Ahmad, who is heading the Implementation Committee.
The minister revealed that 60% of the 150,000 vacant regular posts, which haven’t appeared on payroll, will be eliminated or classified as dying posts, leading to a significant financial impact. “This move is being carried out with the full backing of the federal cabinet,” he emphasized.
The committee has also chosen to outsource general non-core services like cleaning, plumbing, and gardening to enhance efficiency, alongside plans to reduce the number of contingency posts.
Muhammad Aurangzeb announced that the Ministry of Finance will maintain real-time visibility into the cash balances of all government entities. “We cannot afford to borrow on one hand while allowing government departments to sit on idle cash,” he stated.
He clarified that these changes aim to boost efficiency and will be implemented across all ministries, with no adverse effects on personnel.
Key Objectives of the Rightsizing Initiative
1. Optimizing Government Functions:
○ Identify functions that can be outsourced or privatized while maintaining public benefit.
○ Eliminate overlaps and duplication, particularly in post-devolution areas with provinces.
○ Enhance value for public spending through efficiency reforms, including digitization.
2. Comprehensive Review of Federal Entities:
○ The scope includes 43 ministries/divisions and nearly 400 attached entities.
○ Assess each function’s relevance, impact, and potential for public-private partnerships.
3. Strategic Phased Implementation:
○ Divide the initiative into structured waves to minimize disruption:
Wave I: Six ministries are under implementation, including;
1. Ministry of Kashmir Affairs + GB
2. SAFRON
3. Ministry of IT & Telecom
4. Ministry of Industries & Production
5. Ministry of National Health Services, Regulations & Coordination and CADD
Wave II: Five ministries are under implementation, including;
1. Ministry of Science & Technology
2. Commerce Division
3. Housing & Works
4. National Food Security & Research
Wave III: Currently under review, covering;
1. Federal Education and Professional Training
2. Information & Broadcasting
3. Heritage
4. Finance Division
5. Power Division
All Waves include 43 Ministries, analysis and implementation plan of which to be concluded during the course of this fiscal year
2. Financial Consolidation
○ Recommendations address the Federal Government expenditure (PKR 876 billion).
Key Decisions and Outcomes
1. Streamlined Government Structure:
○ Over 150,000 vacant posts (60%) will be abolished or declared redundant.
○ Contingency roles and lower-grade positions will be significantly reduced.
○ Non-core services like cleaning, plumbing, and gardening will be outsourced.
2. Ministry-Specific Outcomes:
Entities to be reduced from 80 to 40 as following:
○ Kashmir Affairs, SAFRON merged, CADD abolished: from 8 entities to 4
○ IT & Telecom: from 11 to 10
○ Industries & Production: from 31 to 6
○ National Health Services: from 30 to 20
3. Enhanced Service Delivery:
○ Citizens will benefit from faster, more efficient services enabled by digitization and improved governance structures.
4. Regulatory Reforms:
O Proposed amendments to the Civil Servants Act to align governance practices with modern needs.
