Islamabad, January 7, 2025 – Finance Minister Muhammad Aurangzeb on Tuesday announced the government’s decision to abolish 150,000 vacant positions that are not on the payroll. This measure is aimed at improving efficiency within the federal government and cutting unnecessary expenditures.
Aurangzeb explained during a press conference that 60% of vacant regular posts, amounting to 150,000 positions, would be eliminated or declared as “dying posts.” He emphasized that this decision has been ratified by the federal cabinet and is expected to yield significant financial benefits.
Detailing the broader plan, Aurangzeb shared that the government aims to complete the rightsizing process of 43 ministries and their 400 attached departments by June 30, 2025. “This fiscal year, all 42 ministries, as the Capital Development Authority has already been abolished, and their associated departments will undergo rightsizing. Recommendations and implementation plans will be finalized within this timeframe,” he stated.
Aurangzeb was joined by Bilal Azhar Kayani, Convener of the National Parliamentary Taskforce on Sustainable Development Goals (SDGs), and Dr. Salman Ahmad, Ambassador at Large, who leads the Implementation Committee. Both officials highlighted the comprehensive and diligent approach being taken to streamline government operations.
The government’s efforts, Aurangzeb noted, include outsourcing non-core services such as cleaning, plumbing, and gardening to improve productivity. He added that the Ministry of Finance will now have real-time visibility into the cash balances of all government entities to prevent scenarios where the government borrows while departments maintain idle funds.
Under Wave-1 of the rightsizing initiative, ministries such as Kashmir Affairs and Gilgit-Baltistan, SAFRON, and Information Technology have already been streamlined, reducing their associated entities from 80 to 40. Wave-2, which focuses on ministries like Science and Technology, Commerce, and Housing, plans to merge or eliminate 25 of their 60 entities. Wave-3 includes Education, Finance, and Power ministries, with a similar reduction strategy underway.
Aurangzeb highlighted the broader structural reforms being implemented to transform Pakistan’s economy. These include measures to promote sustainable, export-led growth, enhance tax collection, and digitize governance systems. One notable initiative is the Faceless Customs Assessment System (FCAS), set to be formally launched by the Prime Minister, which has already shown promising results.
Answering queries, Aurangzeb emphasized that the rightsizing aligns with International Monetary Fund (IMF) benchmarks but is primarily driven by Pakistan’s internal requirements. “This government is addressing inefficiencies that no previous administration dared to tackle,” he said.
Bilal Kayani added that the initiative aims not only to reduce costs but also to eliminate redundancies and enhance government efficiency. Pakistan’s efforts, spearheaded by Aurangzeb, mark a significant step toward achieving macroeconomic stability and sustainable growth.