The Pakistani government has approved a plan to close 33 State-Owned Enterprises (SOEs) in the first phase of a rightsizing initiative aimed at streamlining the government and improving efficiency.

The decision was made during a cabinet meeting, where the Prime Minister-approved recommendations from a committee tasked with reviewing the feasibility of rightsizing the government.

The committee identified 33 SOEs for closure, privatization, or transfer, and 9 others for merger. Additionally, 60% of vacant regular posts (up to 150,000) will be abolished or declared redundant.

The government also plans to outsource non-core services like cleaning, plumbing, and gardening, leading to a significant reduction in staff size. Contingency posts will also be eliminated.

To address concerns from employees affected by the rightsizing exercise, a committee will be formed with representatives from retired judges of superior courts. This committee will have quasi-judicial powers to review and address grievances.

Furthermore, the government will propose amendments to the Civil Servants Act, 1973, and establish a Civil Service Reforms Committee to work in tandem with the rightsizing committee.

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The implementation plan for the first phase of rightsizing is expected to be finalized within two weeks. The second phase will target entities within the Ministry of Commerce, National Food Security and Research, Housing and Works, and Science and Technology.

This move is part of the government’s broader reform agenda to reduce the size and cost of the public sector, improve efficiency, and attract private investment.