ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb, while announcing to abolish 150,000 vacant posts, vowed to complete rightsizing of 43 ministries and their 400 attached departments – a structural benchmark set by the International Monetary Fund (IMF), by end of current fiscal year, to reduce volume, expenditures and improve efficiency of the federal government.
Addressing a press conference, flanked by 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, Aurangzeb said the primary goal behind the rightsizing was to reduce federal government expenditures while ensuring the efficient use of resources.
The high-powered committee established on June 21, 2024, for rightsizing is reviewing 43 ministries and 400 attached departments, which currently account for Rs880 billion in annual spending.
Federal government has embarked on a bold and transformative rightsizing initiative to streamline its operations, eliminate redundancies, and reallocate resources for better public service delivery, he added.
Under the leadership of the prime minister and supervision of the finance minister, a high-powered committee was established, which reflects the government’s commitment to fiscal responsibility, operational efficiency, and citizen-centric governance. The recommendations of the committee are based on the merit and needs of the departments and positions, he added.
The government has decided to abolish 150,000 vacant posts and this has a real impact as it was a budgeted number for this fiscal year, as part of a broader effort to reduce federal expenditure, said the minister, adding that following approvals from the cabinet and the prime minister, it was decided to abolish these posts.
Sharing key decisions and outcomes, the minister said that to streamline government structure, over 150,000 vacant posts (60 percent) will be abolished or declared redundant. Contingency roles and lower-grade positions will be significantly reduced. Non-core services such as cleaning, plumbing, and gardening will be outsourced.
He said, under wave-1, six ministries including Kashmir Affair and Gilgit-Baltistan, SAFRON; Information Technology and Telecom; Industries and Production; National Health Services Regulations and Coordination; CADD were processed.
The minister said the committee has decided to merge ministries of Kashmir Affairs and Gilgit-Baltistan, and SAFRON, whereas, CADD was abolished, adding there were 80 entities associated with these ministries, theses have now been reduced to 40.
Kashmir Affairs and GB and SAFRON would be merged, while CADD be abolished. The number of entities to be reduced from 8 entities to 4. The number of entities in IT and Telecom would be reduced from 11 to 10. In Industries and Production it would be reduced from 31 to 6, while in National Health Services from 30 to 20.
In wave II, five ministries are under implementation, including; Ministry of Science and Technology, Commerce Division, Housing and Works and National Food Security and Research. Of these, 25 entities shall be wind up, 20 reduced and nine merged,” he said.
In wave III of rightsizing, Aurangzeb said the government has notified five ministries i.e. Federal Education and Professional Training, Information and Broadcasting, Natural Heritage and Culture, Finance Division and Power Division. He said that the process of rightsizing shall be completed by June 30, 2025.
Answering a query regarding the judiciary and military related entities, Aurangzeb said that all departments and ministries are under review. The finance minister reiterated that the government’s role is to give a policy framework, while the private sector is responsible for job creation.
Aurangzeb said the rightsizing aligns with structural benchmarks set by the IMF. “From our perspective, I have no issue in stating that it is a structural benchmark assigned by the IMF, but it is necessary for the country,” he said.
Sharing the details, the finance minister said that key objectives of the rightsizing initiative are optimising government functions, identifying functions that can be outsourced or privatised while maintaining public benefit, eliminate overlaps and duplication, particularly in post-devolution areas with provinces and enhance value for public spending through efficiency reforms, including digitisation. The committee assesses each function’s relevance, impact, and potential for public-private partnerships.
He said it has also been decided that the Finance Ministry would have live visibility on the cash balances of the all government entities. “This is being implemented now by all ministries,” said the minister, adding “it cannot happen that at one side we are borrowing and on other government departments have idle cash balances.”
He also said that all departments would be brought into Treasury Single Account (TSA), enabling the government to borrow on net basis.
He said the country’s economy was now moving on the right track, adding the government had increased the pace of the introduction of reforms in the Federal Board of Revenue (FBR).
“FBR is now heading towards digitalisation,” said the minister, adding that Prime Minister Shehbaz Sharif would inaugurate a “faceless system” at the Pakistan Customs office on Wednesday (today) in Karachi. Furthermore, he said, technology was being used to document the economy.
Talking about regulatory reforms, the minister said that proposed amendments to the Civil Servants Act would align governance practices with modern needs.
The finance minister reiterated the need to change the basic DNA of the economy and shift it towards an export-oriented model, with the private sector playing a pivotal role. The government’s job is to provide policy; the private sector’s role is to create jobs, he emphasised.
Copyright media, 2025
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