Islamabad, Jan 7: The federal government, led by Finance Minister Muhammad Aurangzeb, has announced a sweeping rightsizing initiative that will involve the closure of 43 ministries and the elimination of 150,000 vacant government positions. This reform is part of an effort to streamline government operations, reduce expenditures, and enhance overall efficiency within the federal administration.
In Phase I of the initiative, which is already underway, six ministries are currently under review. The government plans to reduce the number of departments within these ministries from 80 to 40. Ministries like Kashmir Affairs and SAFRON will be merged, while the Ministry of Capital Administration and Development Division (CAD) will be abolished entirely. The process is expected to be completed by June 2025, with further phases of the plan focusing on additional ministries and divisions.
Minister Aurangzeb explained that over the last six months, the government has frozen recruitment for vacant posts as part of the rightsizing effort. He emphasized that this reform is not just about cost-cutting, but also about improving the efficiency of government services and enhancing performance.
The restructuring plan aligns with the structural benchmarks set by the International Monetary Fund (IMF), with an emphasis on privatizing non-core functions and transferring responsibilities to provincial governments. Furthermore, efforts to optimize public spending through digitization and the outsourcing of functions that can be privatized will play a significant role in transforming the government’s structure.
As part of the long-term goal, the government aims to shift towards an export-oriented economic model led by the private sector, ensuring the country’s economic sustainability. The initiative, which spans 43 ministries and 400 associated entities, will be carried out in multiple phases, ensuring minimal disruption during implementation.This restructuring represents a significant step towards optimizing federal government operations while addressing the country’s fiscal challenges.
