Islamabad, August 16, 2024 – In a significant move to streamline public sector operations and reduce expenses, the government has decided to phase out 150,000 jobs. The decision, made on Friday, is part of a broader strategy to curtail the size of the public sector and decrease the financial burden on the national treasury.
The Cabinet Committee on Institutional Reforms, which recommended the job cuts, also proposed several other measures aimed at reducing costs and improving efficiency. These include banning contingency recruitment and outsourcing non-core services such as cleaning and janitorial work. The positions being phased out primarily fall within grades 1 to 16, marking a substantial reduction in the public workforce.
The recommendations were presented during a meeting chaired by Prime Minister Muhammad Shahbaz Sharif, who has prioritized reducing government expenditures as a key objective of his administration. The meeting, which focused on right-sizing federal government departments, was led by the Federal Finance Minister. The Ministry of Finance has been tasked with overseeing the cash balances of other federal ministries to ensure that spending is kept in check.
During the meeting, the committee provided a detailed briefing on proposed reforms for five federal ministries: the Ministry of Kashmir Affairs and Gilgit-Baltistan, the Ministry of State and Frontier Regions, the Ministry of Information Technology and Telecommunication, the Ministry of Industry and Production, and the Ministry of National Health Services.
One of the key proposals involves merging the Ministry of Kashmir Affairs and Gilgit-Baltistan with the Ministry of State and Frontier Regions (SAFRON). Additionally, the committee recommended the closure of 28 institutions across these five ministries and the merging of 12 others. The Privatization Ministry and several other ministries are to be transferred to federal units as part of the reorganization.
Prime Minister Shahbaz Sharif directed that these proposed reforms be submitted for approval by the Federal Cabinet. He emphasized the importance of implementing the changes swiftly, stating that the government’s primary goal is to lessen the burden on the national treasury while enhancing the quality of public services. Institutions that fail to demonstrate adequate public service performance and continue to drain national resources should be either terminated immediately or privatized, he added.
In an effort to bolster support for small and medium enterprises (SMEs), the Prime Minister announced that he would personally oversee the Small and Medium Enterprises Development Authority (SMEDA). He directed that SMEDA be brought under the Prime Minister’s Office to ensure it receives the necessary attention and resources to fulfill its mandate.
The meeting was attended by several key government figures, including Federal Minister for Planning Ahsan Iqbal, Federal Minister for Economic Affairs Ahad Khan Cheema, Federal Minister for Finance and Revenue Muhammad Aurangzeb, Federal Minister for Industries and Production Rana Tanveer Hussain, Minister of State for Information Technology and Telecom Shaza Fatima, Minister of State for Finance Ali Pervaiz Malik, Deputy Chairman of the Planning Commission Jahanzeb Khan, Prime Minister’s Coordinator for National Health Dr. Malik Mukhtar Ahmed Bharath, Prime Minister’s Coordinator Bilal Azhar Kayani, and other senior government officials.
This sweeping reform effort reflects the government’s determination to create a more efficient and financially sustainable public sector while improving service delivery to the public.
