Rightsizing measures: govt to abolish 150,000 vacant posts, says Aurangzeb

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb Tuesday announced that the government has decided to abolish 150,000 vacant posts as part of a broader effort to reduce federal expenditure.

Addressing a press conference on Tuesday, the finance minister said the government has adopted a phase-wise approach to reduce its expenditure.

Sharing the decisions taken by the government in recent months, Aurangzeb informed that it “has been decided to abolish 60% vacant regular posts or they should be declared as dying post”.

“This number is around 150,000, and this has a real impact as it was a budgeted number for this fiscal year,” he said.

“Following approvals from the cabinet and the prime minister, we have abolished these 150,000 posts.”

The finance minister informed that the government has also decided to outsource all general non-core services i.e. cleaning, plumbing and gardening.

“This will bring efficiency,” he said.

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Aurangzeb said that the authorities are also deliberating on reducing contingency posts.

“Lastly, the finance ministry will have live visibility on the cash balance of all government entities,” he said. “This is being implemented now by all ministries,” he added.

As part of the rightsizing initiative, the Ministry of Kashmir Affairs & Gilgit Baltistan and the Ministry of States and Frontier Regions (SAFRON) shall be merged, while the Ministry of Capital Administration and Development Division (CAD) be abolished, he said.

“Some 80 entities under these ministries have now been reduced to 40,” he said.

Similarly, a decision has been taken to streamline 60 entities under the Ministry of Science Technology, Commerce Division, Ministry of Housing & Works and Ministry of National Food Security & Research.

“Of these, 25 entities shall be wind up, 20 reduced and nine merged,” he said.

In the next wave of rightsizing, Aurangzeb said that the government has notified five ministries i.e. Federal Education and Professional Training, Information and Broadcasting, Natural Heritage & Culture, Finance Division and Power Division.

He said that the process of rightsizing shall be completed by June 30, 2025.

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Answering a query, Aurangzeb said that all departments and ministries are under review.

The finance minister reiterated that the government’s role is to give a policy framework, while the private sector is responsible for job creation.

Aurangzeb said that the rightsizing aligns with structural benchmarks set by the International Monetary Fund (IMF).

“From our perspective, I have no issue in stating that it is a structural benchmark [assigned by the IMF], but it is necessary for the country,” he said.

Pakistan is currently under a $7-billion, 37-month loan programme with the Washington-based lender, which was inked last year in July.

The next review by the IMF is expected in February.