To reduce the financial burden on the economy, the Federal Government of Pakistan has announced a rightsizing initiative targeting 43 ministries and their 400 attached departments, to be completed by June 30, 2025.
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, unveiled the plan during a press conference held at the Media Resource Center at PTV Headquarters. The initiative, he said, aims to streamline operations, eliminate redundancies, and enhance the efficiency of public service delivery.
The rightsizing process will be executed in phases, with the first wave already underway. This involves the merger of the ministries of Kashmir Affairs and SAFRON, and the abolishment of the Capital Development Authority, reducing eight entities to four. Entities under the Information Technology and Telecommunication Ministry will decrease from 11 to 10, while those under Industries and Production will drop from 31 to six. Similarly, the National Health Services Regulation and Coordination entities will be reduced from 30 to 20.
The second wave will target four ministries, including Science and Technology, Commerce, Housing and Works, and Security Research. This phase plans to wind up 25 entities, merge 20 others, and shift nine. The third wave, currently under review, focuses on five ministries: Education and Professional Training, Information and Broadcasting, National Heritage and Culture, Power Division, and Finance Division.
Senator Aurangzeb also announced proposed amendments to the Civil Servants Act to align governance with modern needs. Over 150,000 vacant positions, comprising 60% of the federal workforce, will be abolished or declared redundant. Contingency roles and lower-grade positions will see significant reductions, while non-core services like cleaning, plumbing, and gardening will be outsourced.
The initiative, led by a High-Powered Committee established on June 21, 2024, under Prime Minister Shahbaz Sharif, emphasizes citizen-centric governance. The committee, supervised by the Finance Minister, is working to ensure systematic devolution to provinces and efficient resource allocation for sustainable growth.
As part of the rightsizing effort, the Ministry of Kashmir Affairs & Gilgit-Baltistan will be merged with the Ministry of States and Frontier Regions (SAFRON), while the Ministry of Capital Administration and Development Division (CADD) will be abolished. This restructuring has reduced the number of entities under these ministries from 80 to 40. Similarly, 60 entities under the Ministry of Science and Technology, Commerce Division, Ministry of Housing and Works, and Ministry of National Food Security and Research are being consolidated, with 25 to be closed, 20 reduced, and nine merged.
The finance minister also announced that five more ministries, including Federal Education and Professional Training, Information and Broadcasting, Natural Heritage and Culture, Finance Division, and Power Division, are currently under review. The rightsizing initiative is expected to be completed by June 30, 2025.
Aurangzeb noted that the restructuring aligns with benchmarks set by the International Monetary Fund (IMF), calling it a necessary measure to ensure fiscal sustainability. Pakistan is currently under a $7 billion, 37-month loan program with the IMF, signed in July last year, with the next review scheduled for February.
McKinsey Pakistan’s Managing Director, Salman Ahmad, assured that the rights of employees across all grades would be protected. He clarified that the reforms would be implemented uniformly across all levels of the federal workforce.
To enhance accountability and cash management, the government will adopt a Treasury Single Account framework, giving the Finance Ministry live visibility into federal finances. Quarterly updates on progress will be shared, with significant improvements expected in the upcoming budget report.
Senator Aurangzeb expressed confidence in the government’s ability to execute 90-95% of the reforms under the Finance Division’s leadership, aligning all ministries with the broader goals of fiscal responsibility and operational efficiency.
The minister stressed that this transformative initiative reflects the government’s commitment to redefining federal operations, reducing redundancies, and ensuring sustainable economic growth.
