In a bid to overhaul the federal government’s structure and ensure fiscal efficiency, Finance Minister Muhammad Aurangzeb announced a monumental initiative to slash 150,000 vacant positions. This restructuring effort is part of a sweeping cost-cutting drive launched in mid-2024 under the leadership of Prime Minister Shehbaz Sharif.

The Major Restructuring Plan

Speaking at a press conference, Aurangzeb revealed the government’s plan to complete these reforms by June 2025. The initiative aims to:

• Reduce the size of the federal government by consolidating 80 agencies into 40.
• Eliminate 60% of vacant positions to streamline operations.
• Merge departments such as Kashmir, Gilgit-Baltistan, and SAFRON affairs for better efficiency.
• Transfer federal hospitals to provincial administrations.

Aurangzeb emphasized that these measures are not merely cost-cutting exercises but also steps toward improving performance and reducing the government’s financial burden, which currently stands at Rs900 billion annually.

A Shift Toward Modernization

The minister outlined plans to reorient Pakistan’s economic model towards export-driven growth, fueled by digital transformation and technology initiatives. Prime Minister Shehbaz Sharif is set to inaugurate a significant tech programme in Karachi, which is expected to bolster the economy further.

Ensuring Macro-Economic Stability

Aurangzeb highlighted positive developments in Pakistan’s macroeconomic indicators. The restructuring follows extensive consultations with ministry heads and agencies to ensure fair evaluation. “Each entity was given an opportunity to present its case before final decisions were made,” he assured.

This ambitious downsizing initiative reflects the government’s commitment to building a more efficient and sustainable federal structure.