January 07, 2025 (MLN): To reduce the financial burden on the economy, 43 ministries and their 400 attached departments will be right-sized by June 30, 2025, said Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.
Federal Minister unveiled a plan, divided into waves, to streamline federal ministries and departments during a press conference held at the MRC at PTV Headquarters today.
The Federal Government of Pakistan has embarked on a bold and transformative rightsizing initiative to streamline its operations, eliminate redundancies, and reallocate resources for better public service delivery.
The press conference aimed to identify functions that can be outsourced or privatized to maintain public benefit and eliminate overlaps and duplication.
It also sought to enhance value for public spending through efficiency reforms, including digitization, particularly in post-devolution areas with provinces.
In the 1st wave, 6 ministries, including the merger of Kashmir Affairs GB and SAFRON, as well as the abolishment of the Capital Development Authority (CDA), were targeted resulting from 8 entities to 4
The Information Technology (IT) and Telecommunication entities will be reduced from 11 to 10.
Additionally, the Industries and Production entities will be reduced from 31 to 6, and the National Health Services Regulation and Coordination entities from 30 to 20.
2nd wave will target 4 ministries such as the Ministry of Science and Technology, the Commerce Division, Housing and Works, and Security Research, with plans to wind up 25 entities and merge 20 others and 9 will be merge shift.
The 3rd wave is currently under review, focusing on five ministries including the Federal Ministry of Education and Professional Training, the Ministry of Information and Broadcasting, the Ministry of National Heritage and Culture.
Additionally, the Power Division and the Finance Division are also part of the review process.
Proposed amendments to the Civil Servants Act to align governance practices with modern needs.
The recommendations of the Committee are based on the merit and needs of the Departments and positions.
Over 150,000 vacant posts (60%) will be abolished or declared redundant, with a significant reduction in contingency roles and lower-grade positions.
Non-core services like cleaning, plumbing, and gardening will be outsourced.
Under the leadership of Prime Minister Shahbaz Sharif, a High-Powered Committee was established on June 21, 2024.
This initiative reflects the government's commitment to fiscal responsibility and operational efficiency.
The committee is under the supervision of the Finance Minister, emphasizing citizen-centric governance as a core focus of the government's agenda.
The Finance Ministry will gain live visibility into federal institutions’ finances to ensure expenditures are monitored on a net basis.
Addressing concerns about employees, McKinsey Pakistan Managing Director Salman Ahmad assured that the rights of all employees, from grade 1 to grade 22, will be protected.
He clarified that right-sizing would not only affect lower-ranked employees but will be implemented across all levels of the federal workforce.
Senator Aurangzeb further stressed the importance of systematic devolution to provinces, ensuring proper handovers to achieve sustainable growth.
To enhance accountability, the government will adopt a Treasury Single Account framework, enabling efficient cash management.
Quarterly updates will be shared, with visible improvements expected in the upcoming budget report.
The minister emphasized that 90-95% of the reforms are implemented when the Finance Division takes charge, ensuring all ministries align with the broader goals of efficiency and growth.
The reforms aim to redefine federal government efficiency, ensuring resources are better allocated for sustainable growth and development.
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Posted on: 2025-01-07T15:59:58+05:00
