ISLAMABAD: In a sweeping move to curb rising federal expenditures and boost efficiency, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, announced on Tuesday the abolition of 150,000 vacant government posts. The decision, aimed at streamlining governance, was approved by the Cabinet and the Prime Minister as part of a broader rightsizing initiative.
“This bold step will significantly ease the federal budget, as these positions were budgeted for this fiscal year but remained unutilized,” Aurangzeb stated during a press conference. The move, he revealed, eliminates 60% of regular vacant posts, many of which have been labeled as “dying posts,” marking a milestone in the government’s drive to rationalize its operations.
Streamlining Services
In addition to abolishing posts, the government is outsourcing non-core services such as cleaning, plumbing, and gardening to enhance operational efficiency. A comprehensive review is underway to consolidate overlapping roles and ensure real-time cash management across ministries, providing live visibility into cash balances.
Ministries Merge in Rightsizing Blitz
As part of the initiative, the Ministry of Kashmir Affairs & Gilgit-Baltistan is merging with the Ministry of States and Frontier Regions (SAFRON), and the Ministry of Capital Administration and Development Division (CADD) will be abolished altogether. The number of entities under these ministries has been slashed from 80 to 40.
The restructuring wave has also hit other major portfolios:
- 60 entities under the Ministry of Science and Technology, Commerce Division, Ministry of Housing and Works, and Ministry of National Food Security and Research are being trimmed, with 25 entities to be closed, 20 downsized, and nine merged.
- Five more ministries, including Federal Education and Professional Training, Information and Broadcasting, Natural Heritage and Culture, Finance Division, and Power Division, are under review for similar cuts.
The rightsizing process is set to conclude by June 30, 2025, marking a major overhaul in government operations.
IMF Benchmarks and Fiscal Responsibility
Aurangzeb emphasized that the restructuring is aligned with International Monetary Fund (IMF) benchmarks. Pakistan, currently under a $7 billion, 37-month IMF loan program, is required to meet fiscal discipline targets. With the next IMF review in February, the rightsizing initiative underscores the government’s commitment to achieving fiscal sustainability.
“This isn’t just about cutting costs—it’s about modernizing governance,” the minister remarked. He stressed that job creation is the private sector’s responsibility while the government’s focus remains on creating a streamlined policy framework.
A Leaner, Meaner Government
The finance minister assured that this initiative would eliminate redundancies, optimize functions, and prioritize effective public service delivery. By reducing bloated bureaucracy, the government aims to make its structure more agile and cost-effective.
“This effort signals our unwavering dedication to a leaner, smarter government that delivers real value to its people,” Aurangzeb concluded.
The announcement has sparked discussions across sectors, with analysts lauding the fiscal responsibility while cautioning that the government must ensure effective implementation to avoid disruptions in service delivery.
