The federal government has decided to merge the Ministry of Kashmir and Gilgit-Baltistan with the Ministry of State and Frontier Regions (SAFRON) as part of its austerity measures ahead of the International Monetary Fund’s approval for a $7 billion bailout package.

Earlier this month, the Cabinet Committee on Institutional Reforms recommended curtailing 150,000 vacant positions, banning contingency recruitment, and outsourcing non-core services like cleaning, and janitorial work, which would gradually phase out many positions in grades 1 to 16.

The committee’s proposal involved closing 28 institutions across above mentioned five ministries, transferring the privatisation ministry and some other ministries to federal units and merging 12 institutions within such ministries.

The ruling coalition has also decided to merge the Ministry of Commerce with the Ministry of Industry and Production, according to a document outlining the plan to streamline federal ministries.

The document outlines a decision to eliminate 60% of vacant positions across such ministries. The Ministry of Commerce will be merged with the Ministry of Industry and Production, according to the document.

Moreover, a committee would be formed to address properties related to Jammu and Kashmir, and there would be reductions in staff for both the Azad Jammu and Kashmir and Gilgit-Baltistan councils.

In a significant move, the decision has also been made to close the National Information Technology Board (NITB) under the Ministry of IT. The Virtual University would be placed under the jurisdiction of the Ministry of Education.

The government has decided to place the Small and Medium Enterprises Development Authority under the Prime Minister’s Office. The National Fertilizer Corporation and the National Fertilizer Marketing Limited would also be closed as part of the restructuring plan.

The premier would also determine the future of the Drug Regulatory Authority while a decision has been made to eliminate 98 vacant positions within the Pakistan Medical and Dental Council.

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Pakistan and the IMF reached an agreement on the 37-month loan programme in July. The IMF said the programme was subject to approval from its executive board and obtaining “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners”.

Last month, renowned economist Dr Kaiser Bengali resigned from all his official positions after being “disillusioned” by government policies. He criticised the government’s approach to cost-cutting, stating that it was laying off lower-level employees instead of officers.

In a rejoinder, the federal government said Bengali’s statement seemed to be a result of a lack of proper communication or understanding. “All government positions in BS-1 to BS-22 are being rightsized, not just positions in BS-1 to 16. The estimated 60,000 positions that may be rendered surplus as a result of the exercise also include positions in BS-17 to BS-22,” it said.