Govt Will End 150,000 Jobs and Close 43 Ministries

Finance Minister Muhammad Aurangzeb on Tuesday announced that the federal government will close 43 ministries and eliminate 150,000 vacant posts in Phase-I of its sweeping rightsizing initiative to reduce state expenditures and improve efficiency.

This includes merging departments and outsourcing non-core services. Aurangzeb said he and his team are identifying redundant structures within the federal government.

The reforms, which will be implemented in phases, have already begun with six ministries under review. The minister said in the first phase, the number of departments within these ministries will be reduced from 80 to 40. Additionally, ministries like Kashmir Affairs and SAFRON will be merged, while the Ministry of Capital Administration and Development Division (CAD) will be abolished. The process is expected to be completed by June.

Aurangzeb revealed that the government has stopped recruitment for vacant positions over the last six months. He said the purpose of rightsizing is not merely cost-cutting but enhancing government performance.

The Finance Minister acknowledged that these measures align with the International Monetary Fund’s structural benchmarks but stressed their necessity for the country’s economic future. He briefly discussed plans to privatize taxation, improve the energy sector, and transfer non-federal responsibilities to provincial governments.

Aurangzeb vowed that the economy would be transformed into an export-oriented model led by the private sector.

Key Objectives of the Rightsizing Initiative

• Optimizing Government Functions
  • Identify functions that can be outsourced or privatized while maintaining public benefit.
  • Eliminate overlaps and duplication, particularly in post-devolution areas with provinces.
  • Enhance value for public spending through efficiency reforms, including digitization.
• Comprehensive Review of Federal Entities
  • The scope includes 43 ministries/divisions and nearly 400 attached entities.
  • Assess each function’s relevance, impact, and potential for public-private partnerships.
• Strategic Phased Implementation
  • Divide the initiative into structured waves to minimize disruption
    • Wave I: Six ministries are under implementation, including;
      • Ministry of Kashmir Affairs + GB
      • SAFRON
      • Ministry of IT & Telecom
      • Ministry of Industries & Production
      • Ministry of National Health Services, Regulations & Coordination and CAD
    • Wave II: Five ministries are under implementation, including;
      • Ministry of Science & Technology
      • Commerce Division
      • Housing & Works
      • National Food Security & Research
    • Wave III: Currently under review, covering;
      • Federal Education and Professional Training
      • Information & Broadcasting
      • Heritage
      • Finance Division
      • Power Division

All Waves include 43 Ministries, analysis and implementation which are planned to be concluded during the course of this fiscal year.

Recommendations address the Federal Government expenditure (PKR 876 billion).