Islamabad, January 7, 2025: Finance Minister Muhammad Aurangzeb on Tuesday announced that the government will complete the rightsizing of 43 ministries and over 400 attached departments by June 30, aiming to cut expenditures and enhance government efficiency.
Speaking at a press conference to present the six-month progress of the High-Powered Committee on Rightsizing, Aurangzeb stated, “We have planned to rightsize five or six departments in each phase, with a goal of reducing 80 institutions by half.”
Accompanied by Bilal Azhar Kayani, Convener of the National Parliamentary Taskforce on Sustainable Development Goals (SDGs), and Dr. Salman Ahmad, Ambassador-at-Large and head of the Implementation Committee, the finance minister shared key updates on the initiative.
Aurangzeb revealed that the government has abolished or declared as dying posts 60% of vacant regular positions—approximately 150,000 posts—that had not been included in payrolls. “These measures will have a tangible financial impact and have been undertaken with the federal cabinet’s ratification,” he added.
The committee has also decided to outsource non-core services such as cleaning, plumbing, and gardening to improve efficiency, while contingency posts are also being downsized.
Commenting on the broader economic outlook, Aurangzeb said that while the first half of the fiscal year was dedicated to achieving macroeconomic stability, the focus has now shifted towards ensuring sustainable growth. He underscored that previous attempts to reduce the size of the federal government had been insufficient, and this time the goal is to cut down the federal government’s annual expenditure of PKR 900 billion.
“The purpose of rightsizing is not just to reduce costs but to enhance the performance of government institutions,” he emphasized.
Additionally, Aurangzeb highlighted a key decision to enable the finance ministry to monitor live cash balances of all government entities. “It is unacceptable that while the government is borrowing on one side, some departments are sitting on idle cash balances. This reform will improve financial oversight and resource allocation.”
Under the first phase of rightsizing, six ministries were processed, including Ministry of Kashmir Affairs and Gilgit-Baltistan, Ministry of States and Frontier Regions (SAFRON), Ministry of Information Technology and Telecom, Ministry of Industries and Production, Ministry of National Health Services, Regulations, and Coordination and Capital Development Authority (CDA)
Aurangzeb added that the committee has decided to merge the Ministries of Kashmir Affairs and Gilgit-Baltistan with SAFRON, while the Capital Development Authority (CDA) has been abolished.
The rightsizing initiative, which focuses on structural reforms and improving service delivery, is expected to continue in phased waves, with significant reductions in non-essential roles and departments. “This is a people-centric reform aimed at making the government leaner, more responsive, and performance-driven,” the finance minister concluded.
