On Friday, the Cabinet Division Committee on Institutional Reforms recommended a major overhaul of the public sector, proposing the cutting of 150,000 vacant positions. This move aims to streamline government operations and reduce expenses. The committee also suggested banning contingency recruitment and outsourcing non-core services such as cleaning and janitorial work, which will result in the gradual phase-out of many positions in grades 1 to 16.
The recommendations were presented during a meeting chaired by Prime Minister Shahbaz Sharif, with the Federal Finance Minister leading the discussion. The committee’s focus was on right-sizing federal government departments to enhance efficiency and cut costs. The Ministry of Finance has been tasked with monitoring the cash balances of other federal ministries as part of these reforms.
The committee provided a comprehensive briefing on proposed reforms for five key ministries: the Ministry of Kashmir Affairs and Gilgit-Baltistan, the Ministry of State and Frontier Regions (SAFRON), the Ministry of Information Technology and Telecommunication, the Ministry of Industry and Production, and the Ministry of National Health Services. A key proposal is to merge the Ministry of Kashmir Affairs and Gilgit-Baltistan with SAFRON.
Additional proposals include closing 28 institutions across these ministries, transferring the Privatization Ministry and others to federal units, and merging 12 institutions within these ministries.
Prime Minister Shahbaz Sharif emphasized that the proposed reforms should be swiftly approved by the Federal Cabinet and implemented through a detailed plan. He stressed that reducing government expenditure is a top priority. The Prime Minister also directed that any institutions failing to deliver adequate public service or excessively burdening the national treasury should be either terminated or privatized.
Furthermore, the Prime Minister pledged to oversee the Small and Medium Enterprises Development Authority (SMEDA) personally and ensure it is brought under the Prime Minister’s Office to better support small and medium enterprises.
The meeting was attended by key figures including Federal Ministers Ahsan Iqbal, Ahad Khan Cheema, Muhammad Aurangzeb, and Rana Tanveer Hussain, among other senior government officials.
