Pakistan’s Law Minister Azam Nazeer Tarar has indicated that long-serving government employees in dissolved institutions may face early retirement. Speaking during a Senate session on January 15th, 2025, Minister Tarar stated that employees within five years of their retirement from these dissolved entities will be offered retirement packages.

The announcement follows the government’s ongoing efforts to streamline its operations and reduce its wage bill. This includes a recent ban on new hiring and the elimination of redundant positions across federal ministries and departments. The government has already reportedly eliminated 150,000 positions.

Minister Tarar emphasized the need for “right-sizing” government operations, citing rising circular debt and fiscal deficits as reasons for the restructuring. He used the example of the Civil Aviation Authority, which has already been merged with the Ministry of Defense, as a model for this restructuring.

While acknowledging concerns about job losses, Minister Tarar assured that affected employees would receive severance packages. He also clarified that those willing to continue working may be retained under new contracts with private contractors managing the merged entities.

The minister stressed that all actions will adhere to legal procedures. The government is currently auditing vacant positions unfilled for over three years, with plans to eliminate them as well. All federal entities have been instructed to submit workforce details by February 6th, with a strict ban on creating new positions without prior approval from the Ministry of Finance.