The federal government has decided to halve the number of affiliated agencies, reducing 150,000 vacant positions, as part of a broad cost-cutting and efficiency drive, Finance Minister Muhammad Aurangzeb announced on Tuesday. In a press conference, Aurangzeb highlighted the government’s goal of completing these reforms by June 2025. "We are reducing the size of the federal government 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’s government to rationalize spending and improve performance. The effort, initially targeting 45 ministries and 400 partner organizations, focuses on reducing the government’s financial footprint, which currently costs 900 billion rupees a year. Aurangzeb explained that 60% of vacant federal posts have been eliminated while other measures such as merger of Kashmir Affairs, Gilgit-Baltistan and SAFRON departments are underway. The federal government also plans to transfer hospitals to provincial administrations. “It’s not just about reducing costs; it is about improving efficiency,” Aurangzeb said. The minister also shared plans to shift Pakistan’s economic framework towards export-led growth, supported by digitalization and technology initiatives. In this regard, the prime minister is expected to inaugurate a new technology-related program in Karachi soon. Aurangzeb highlighted the government’s recent focus on macroeconomic stability and stated that key indicators are moving positively. “We are in a promising economic situation,” he said. The reduction initiative follows extensive consultations with heads of ministries and affiliated agencies to assess their relevance and performance. “Each entity was given the opportunity to present its case before decisions were made,” Aurangzeb said.
FinMin announces 150,000 government job cuts in major ‘right-sizing initiative’
