FinMin announces slashing 150k govt jobs in major 'right-sizing initiative'

The restructuring is part of a broader initiative launched in mid-2024 by a committee formed under PM Shehbaz

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The federal government has decided to cut the number of affiliated agencies in half, reducing 150,000 vacant positions, as part of a sweeping cost-cutting and efficiency drive, Finance Minister Muhammad Aurangzeb announced on Tuesday.

Speaking at a press conference, Aurangzeb highlighted the government’s goal to complete these reforms by June 2025. "We are reducing the federal government’s size step by step. So far, 80 agencies have been consolidated into 40," he stated.

The restructuring is part of a broader initiative launched in mid-2024 by a committee formed under Prime Minister Shehbaz Sharif to rationalise expenditures and improve performance. Initially targeting 45 ministries and 400 associated organisations, the effort focuses on reducing the government’s financial footprint, which currently costs Rs900 billion annually.

Aurangzeb explained that 60% of vacant federal positions have been eliminated, while other measures, such as merging the Kashmir, Gilgit-Baltistan, and SAFRON affairs departments, are underway. The federal government also plans to transfer hospitals to provincial administrations.

“This is not just about cutting costs; it’s about improving efficiency,” Aurangzeb remarked.

The minister also shared plans to shift Pakistan’s economic framework towards export-driven growth, supported by digitalisation and technology initiatives. In this regard, the prime minister is expected to inaugurate a new technology-related programme in Karachi soon.

Aurangzeb noted the government’s recent focus on macroeconomic stability, asserting that key indicators are moving positively. “We’re at a promising economic juncture,” he said.

The downsizing initiative follows extensive consultations with ministry heads and affiliated agencies to evaluate their relevance and performance. “Each entity was given a chance to present its case before decisions were made,” Aurangzeb assured.