Islamabad, June 10, 2025: Finance Minister has announced that the federal cabinet has approved the rightsizing of 10 ministries, while 6 divisions have been merged into 3 to improve administrative efficiency.
In a major structural reform, 45 public sector companies and institutions will either be privatized, merged, or dissolved. The minister clarified that privatization is not merely for financial stability but aims to deepen the capital markets.
Final recommendations for rightsizing 10 ministries have been finalized, while proposals for 8 more ministries are under consideration.
Addressing pension reforms, the minister stated that pension increases will now be linked to inflation. In case of the spouse’s death, family pension will be limited to 10 years, and multiple pensions will be discontinued. Furthermore, retired employees rejoining service will have to choose either a salary or a pension—not both.
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The minister also highlighted that in the past 16 months, special focus was given to climate finance, with the IMF providing $1.4 billion to support climate resilience efforts.
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