Islamabad (Web Desk): Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday outlined the government's commitment to streamlining operations across federal ministries and their attached departments.
Addressing a news conference in Islamabad, he provided a comprehensive overview of the work accomplished so far in this regard.
The finance minister expressed the confidence that the complete analysis and implementation of rightsizing measures for 43 ministries and nearly 400 affiliated organizations would be concluded by June 30 of the current fiscal year.
The initiative, which aims to reduce government expenditure and enhance the efficiency of public service delivery, is being carried out under the oversight of a dedicated committee.
Aurangzeb revealed that a key aspect of the reform is addressing the 150,000 vacant posts within the government workforce. These positions, which are not currently occupied, will either be abolished or classified as "dying posts," effectively cutting unnecessary payroll costs.
This decision, he clarified, has been approved by the federal cabinet and is a crucial step toward more prudent fiscal management.
The minister also highlighted the move to outsource non-essential services such as cleaning, plumbing, and gardening.
“By doing so, the government hopes to reduce redundancies and free up resources that can be better used in core functions,” he said, adding that the government plans to cut down on contingency posts, which are positions held for emergency or temporary tasks, further streamlining operations.
The finance minister said that significant component of the rightsizing initiative will involve better monitoring of the financial standing of all government entities.
Aurangzeb pointed out that the finance minister will now have real-time visibility into the cash balances of these organizations to prevent situations where some departments hold idle funds while the government is simultaneously taking on new debt.
The minister informed that the rightsizing process is being carried out in phases.
The first wave, which has already been implemented, involved six ministries, including the Ministry of Kashmir Affairs and Gilgit-Baltistan, SAFRON, and the Capital Development Authority (CAD).
As part of this phase, several entities have been consolidated or abolished, significantly reducing the number of organizations linked to these ministries.
The second wave is currently underway, involving ministries such as science and technology, commerce, and housing and works, with several entities under these ministries expected to be eliminated, merged, or restructured.
A third phase is also in progress, affecting key ministries including education, broadcasting, finance, and power.
Each ministry and its associated departments have had the opportunity to present their case during the review process, which has involved extensive consultations.
Once the committee reaches a decision on a ministry, the recommendations are submitted to the prime minister for approval by the federal cabinet before moving forward with the implementation plan.
Responding to a question, Aurangzeb stressed that rightsizing is in line with the structural reforms outlined by the International Monetary Fund (IMF), it is being pursued not just to meet international obligations but as a vital step for the country’s long-term economic health.
The reforms are part of a broader effort to stabilize the economy, with a focus on reducing government expenditures and boosting efficiency within public institutions.
The finance minister further emphasized that the government’s efforts to overhaul the economy were already showing signs of progress, citing improvements in fiscal discipline, tax reforms, and the ongoing digital transformation within key government departments.
He also highlighted the upcoming launch of the Faceless Customs Assessment System (FCAS), which is expected to streamline customs procedures and reduce inefficiencies within the Federal Board of Revenue (FBR).
Responding to a question, the finance minister expressed the optimistic that these reforms would lead to a significant reduction in government spending, which would be reflected in the next federal budget.
“The rightsizing process represents a bold step that no previous administration had dared to undertake on such a scale, and it is expected to create long-lasting improvements in government functioning,” the finance minister said.
