The Cabinet Committee on Institutional Reforms recommended on Friday 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.
Finance Minister Muhammad Aurangzeb presented its recommendations for right-sizing in the federal government departments during a meeting presided over by Prime Minister Shahbaz Sharif. They had met to discuss ways to reduce public sector size and expenses.
The committee asked the finance ministry to oversee the cash balances of other federal ministries.
Pakistan and the International Monetary Fund reached an agreement for a loan programme in July. It would be the country’s 24th “longer and bigger” loan programme.
In June, PM Shehbaz ordered the wrapping up of the Pakistan Public Works Department (Pak PWD) due to “years’ long poor performance and corruption.” The federal government has vowed to cut expenditures to improve the economy.
According to ministers, the federal cabinet members were not taking salaries. But experts have not welcomed such steps and asked the government to shut down redundant ministries and cut non-developmental expenditures.
The committee provided a detailed briefing on recommended reforms for five federal ministries: the Ministry of Kashmir Affairs and Gilgit-Baltistan, the Ministry of State and Frontier Regions (SAFRON), Ministry of Information Technology and Telecommunication, the Ministry of Industry and Production, and the Ministry of National Health Services.
The committee proposed merging the Ministry of Kashmir and Gilgit-Baltistan with SAFRON.
The proposal involves 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.
PM Shehbaz said that such proposed reforms should be approved by the federal cabinet and that a comprehensive plan for their implementation be presented. He added that curtailing government expenditure was among his priorities.
The goal of the government’s institutional reforms was to lessen the burden on the national treasury and enhance the quality of services provided to the people, he said.
The premier directed that institutions failing to demonstrate adequate public service performance and burdening the national exchequer should be “either terminated immediately or privatised without delay.”
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The premier vowed to oversee the Small and Medium Enterprises Development Authority (Smeda), an organisation supporting small and medium enterprises, and directed that Smeda be brought under the PM’s Office.
When economist Kaiser Bengali appeared on Spotlight with Munizae Jahangir aired on Aaj News last month, he warned that the government would approach the International Monetary Fund for another bailout package after one year if the government does not reduce its expenses.
“The fundamental point is that the solution to fiscal crisis is not more taxes. It is more expenditure reduction,” he had said.
