Says 60% of vacant federal positions eliminated; Rightsizing of 43 ministries, 400 departments to be completed by June 30
The federal government has decided to abolish around 150,000 posts across various ministries in a move aimed at reducing federal expenditures, Finance Minister Muhammad Aurangzeb said.
Addressing a presser in Islamabad, the finance minister said that the federal cabinet approved a proposal to abolish approximately 60 percent of vacant positions across ministries.
He said that the cabinet’s decision is part of a comprehensive plan to streamline the government’s operations and reduce unnecessary expenditures.
The finance minister said that the federal government’s current expenditures stand at around Rs 900 million. Aurangzeb said that a committee formed by the Prime Minister reviewed 43 ministries and 400 departments to assess their performance and utility over the past 30 to 40 years.
“Based on the committee’s recommendations, the cabinet approved the abolition of approximately 60% (approximately 150,000) vacant positions across ministries,” the finance minister added.
He said that the review aims to identify areas where responsibilities can be devolved to the provinces and where unnecessary departments can be abolished. The minister emphasised that the goal is to create a more efficient and effective government machinery.
Muhammad Aurangzeb said that the review process is being conducted in phases, with the first phase focusing on six ministries and the second phase covering four ministries. He said that the third phase will involve a review of an additional five ministries and departments.
Speaking on reforms in the Federal Board of Revenue the finance minister said the reforms are being made gradually. He said that the government is committed to achieving sustainable development, hoping that the private sector will play a crucial role in this endeavor.
Muhammad Aurangzeb said that the “Udaan Pakistan” programme, aimed at promoting sustainable development, is expected to be a key initiative in this regard. “We are reducing the federal government’s size step by step. So far, 80 agencies have been consolidated into 40,” he stated.
The federal government also plans to transfer hospitals to provincial administrations. “This is not just about cutting costs; it’s about improving efficiency,” Aurangzeb remarked.
The minister also shared plans to shift Pakistan’s economic framework towards export-driven growth, supported by digitalisation and technology initiatives. In this regard, the prime minister is expected to inaugurate a new technology-related programme in Karachi.
Aurangzeb noted the government’s recent focus on macroeconomic stability, asserting that key indicators are moving positively. “We’re at a promising economic juncture,” he said.
The downsizing initiative follows extensive consultations with ministry heads and affiliated agencies to evaluate their relevance and performance. “Each entity was given a chance to present its case before decisions were made,” Aurangzeb assured.
Senator Aurangzeb expressed confidence in completing the rightsizing of 43 ministries and their 400 attached departments by June 30 of the current fiscal year to reduce expenditures and improve efficiency of the government.
The committee, he said, also decided to outsource general non-course services including cleaning, plumbing and gardening to bring efficiency, adding the number of contingency posts would also be reduced.
He said, it has also been decided that the ministry of finance would have live visibility on the cash balances of the all government entities. “It cannot happen that at one side we are borrowing and on other government departments have idle cash balances.” However, he added, it has nothing to do with people, but to improve efficiency, adding it was being implemented in all ministries.
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; Capital Development Authority were processed.
The minister said the committee has decided to merge Ministries of Kashmir Affairs and Gilgit-Baltistan, and States and Frontier Regions whereas CAD was abolished, adding there were 80 entities associated with these ministries, theses have now been reduced to 40.
