Finance Minister Muhammad Aurangzeb announced plans to abolish nearly 150,000 vacant government posts by June 2025. The decision, part of a larger cost-cutting initiative launched in mid-2024, aims to streamline operations, reduce expenditures, and improve efficiency across federal departments.
Aurangzeb explained that 60 percent of vacant positions across 43 ministries and their 400 subordinate agencies would be eliminated, cutting down the workforce by half. “This step-by-step approach will help rationalize expenditures and enhance performance,” he said during a press conference in Islamabad.
The federal government’s expenditures currently stand at Rs900 billion ($3.2 billion). By eliminating redundant positions and consolidating departments, the administration aims to save Rs42.1 billion ($151 million) annually.
Department Mergers and Reductions
The reforms have been phased to address six ministries at a time. In the first phase, the Ministries of Kashmir Affairs, Gilgit-Baltistan, and SAFRON (States and Frontier Regions) were merged, while the Capital Administration and Development Division (CAD) was abolished. This process reduced 80 entities under these ministries to 40.
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The second phase targeted four more ministries: Science and Technology, Commerce, Housing and Works, and National Food Security. Out of 60 subordinate institutions in these ministries, 25 are to be abolished, 20 downsized, and nine merged. The next phase will include five ministries, such as Federal Education, Information and Broadcasting, and the Finance Division.
“We are transferring responsibilities where necessary and abolishing redundant entities,” Aurangzeb noted, adding that the government also plans to transfer hospitals to provincial administrations.
Economic Challenges and Broader Goals
The sweeping reforms come amid efforts to revive Pakistan’s $350 billion economy, which narrowly avoided default in June 2023. After securing a $7 billion loan from the International Monetary Fund (IMF), Pakistan has been actively pursuing austerity measures and economic reforms to stabilize the macroeconomic environment.
The finance minister highlighted the government’s focus on shifting to an export-driven economy supported by digitalization and technology initiatives. He announced that the prime minister would soon inaugurate a technology-related program in Karachi to bolster this vision.
Aurangzeb also pointed to recent policy changes, including the abolition of traditional pension systems and the reduction of pension benefits for current employees, as examples of efforts to rein in public spending.
Challenges and Promising Prospects
Critics have raised concerns about the efficiency of such reforms, given Pakistan’s longstanding bureaucratic challenges. However, Aurangzeb emphasized that the government’s gradual approach was designed to ensure sustainable results. “The problem is that if you try to do everything at once, it doesn’t work. That’s why we’re implementing these reforms in stages,” he said.
The finance minister underscored that this initiative is not just about reducing costs but also about creating a more efficient government apparatus. Outsourcing non-core services, such as gardening and plumbing, has already improved efficiency in some departments.
As Pakistan moves forward with these measures, experts say the government’s success in implementing reforms and improving economic indicators will be crucial for regaining public trust and securing long-term stability. “Pakistan stands at a promising economic juncture due to these efforts,” Aurangzeb concluded, signaling cautious optimism for the country’s fiscal recovery.