Islamabad, June 9, 2025: In a decisive move to stabilize the economy, the Pakistan federal government has unveiled a far-reaching rightsizing initiative to trim down 43 ministries and nearly 400 affiliated departments. This critical restructuring is scheduled for completion by June 30, 2025.
Announced by Finance Minister Senator Muhammad Aurangzeb, the plan seeks to reduce administrative redundancy, enhance service efficiency, and align federal governance with fiscal discipline goals. Speaking at a media briefing held at PTV Headquarters, the minister emphasized that this move is essential for sustainable economic growth and efficient resource allocation.
The transformation is being rolled out in multiple phases. The first wave is already in motion—merging the Ministries of Kashmir Affairs and SAFRON, and abolishing the Capital Development Authority (CADD). The result: a reduction from eight entities to four.
Additionally, the Ministry of IT and Telecom will see its departments drop from 11 to 10, while Industries and Production will contract dramatically from 31 entities to just six. The National Health Services ministry will also cut its units from 30 to 20.
The second wave is targeting four ministries: Science and Technology, Commerce, Housing and Works, and Security Research. Plans include closing 25 entities, merging 20, and reallocating nine. A third phase, now under review, involves Education and Professional Training, Information and Broadcasting, National Heritage and Culture, Power Division, and the Finance Division.
Aurangzeb confirmed upcoming amendments to the Civil Servants Act, aimed at modernizing governance structures. Over 150,000 vacant federal positions—which make up 60% of the current workforce—will be eliminated or declared redundant. Furthermore, lower-tier and non-core roles such as cleaning and maintenance will be outsourced, slashing costs and increasing efficiency.
This national effort is overseen by a High-Powered Committee, formed on June 21, 2024, and chaired by Prime Minister Shahbaz Sharif. The Finance Minister, who heads the committee, reiterated the government’s commitment to citizen-first governance and systematic devolution to provinces.
As part of the rightsizing blueprint, the number of subordinate organizations under the Ministries of Kashmir Affairs, SAFRON, and CADD has already been cut by half—from 80 to 40. Similarly, 60 departments under Science and Technology, Commerce, Housing, and National Food Security are undergoing consolidation, with 25 being shut down, 20 downsized, and nine merged.
The initiative also aligns with key benchmarks set by the IMF Pakistan loan program. Senator Aurangzeb confirmed that this structural shift is a fiscal reform imperative, aligned with Pakistan’s $7 billion, 37-month loan agreement signed in July last year. The next IMF review is due in February.
Meanwhile, McKinsey Pakistan’s Managing Director Salman Ahmad assured that the rights of federal employees would remain protected across all pay scales. He emphasized that implementation would be fair and uniform nationwide.
The government is also preparing to launch a Treasury Single Account (TSA) to bring real-time visibility into federal cash flows. Quarterly progress updates will be shared with the public, with major improvements expected in the upcoming federal budget report.
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Concluding the briefing, Senator Aurangzeb expressed confidence in achieving 90–95% reform execution under the Finance Division’s leadership. He highlighted that the government is fully committed to operational efficiency, fiscal stability, and a leaner, citizen-centric federal structure.
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