Govt to retain only strategic ministries

Government to close or privatise SOEs and non-strategic ministries as part of its austerity measures.

Federal Minister for Maritime Affairs Qaiser Ahmed Sheikh has said the government is planning to close or privatise state-owned enterprises (SOEs) and non-strategic ministries as part of its austerity measures.

"This move will not only relieve the government of a significant burden but also ensure a focus on good governance," the minister said while speaking to a private news channel.

Sheikh said the government is looking at multiple SOEs and considering whether to privatize them or close them entirely. "These institutions generally generate losses and perform poorly. They bring no benefit and people are not satisfied with their service," he said.

Sheikh said the government is holding discussions related to all federal institutions, aiming to privatize most of them. "There are few that serve a strategic purpose. We need to downsize to ensure better governance."

When asked which institutions and ministries would be shut down, Sheikh provided no names but said they would be either closed or merged with other ministries.

"We are either going to merge one ministry with the other, or we will reduce the amount of divisions within them. The federal government needs to focus on good governance, so it will only control those institutions that serve a strategic purpose."

The minister said the measures intend to lower expenditures, adding that the government has recently decided to stop offering jobs as well.

"We have stopped [offering] jobs as a means to cut down on spending. These institutions run on tax revenue and so far we are generating losses. We aim to maintain a very lean government," he said.

The minister said in addition to banning new job hiring, serving government officials will be prohibited from purchasing new cars and will be required to cover their own utility bills.