Pakistan’s Minister for Finance, Mohammad Aurangzeb, announced on Tuesday a comprehensive rightsizing exercise aimed at streamlining government operations and cutting unnecessary costs. This initiative is in line with the government’s commitment to fiscal responsibility and enhancing operational efficiency, as part of a broader effort to meet the structural benchmarks of Pakistan’s IMF program.
The government has already implemented changes across 16 ministries, with 50% of their attached departments now approved for closure. A significant move includes the abolition of 150,000 vacant budgeted posts in all ministries and attached departments. The government also plans to amend the Civil Service Act, allowing public sector employees to either join a surplus pool or opt for voluntary separation.
This rightsizing strategy will reduce government expenditure, which currently stands at Rs880 billion annually for ministries and attached departments. The government’s decision to downsize comes amid questions regarding the planned expansion of the federal cabinet and the overall justification for these drastic measures.
Pl watch the video and subscribe to the YouTube channel of republicpolicy.com
Key decisions include merging and reducing ministries, such as the merging of Kashmir Affairs and Safron and the reduction of entities in the IT and Telecom Ministry from 11 to 10. The Industries and Production Ministry will be downsized from 31 entities to just 6, while National Health Services will be cut from 30 to 20.
Aurangzeb stated that the rightsizing initiative is part of the ongoing IMF-backed reforms. The government’s goal is to complete the rightsizing of all 42 ministries by June 2025. The Finance Minister emphasized the importance of implementing the Treasury Single Account (TSA) system, which is already in place in 80-85% of departments, to streamline public sector finances.
The initiative, which covers 43 ministries and nearly 400 attached entities, aims to eliminate redundancies, optimize government functions, and outsource non-core services such as cleaning and gardening. Additionally, vacant and lower-grade positions will be abolished, significantly reducing the public sector workforce.
As part of the initiative, government entities will also undergo a detailed review to assess their relevance, impact, and potential for public-private partnerships. The restructuring is expected to enhance service delivery, reduce waste, and improve overall governance. The government’s ultimate goal is to create a more efficient and responsive public sector, benefiting citizens through faster, digitized services.
