Pakistan Government Rightsizing Reforms 2025: Abolishing 150,000 Jobs, Streamlining 43 Ministries, and 400 Departments
- Abeera Marium Siddiqui
- January 8, 2025
- 12:34 pm
- 36
- Current Affairs
Pakistan Government Rightsizing Reforms are set to transform the country’s governance landscape by merging 43 ministries and restructuring over 400 departments. This ambitious plan seeks to abolish 150,000 vacant government posts accounting for roughly 60% of the federal workforce. It is estimated to save Rs42.1 billion ($151 million) annually. Moreover, these measures aim to stabilize Pakistan’s $350 billion economy and ensure long-term fiscal sustainability.
Rightsizing Initiative: An Overview
Finance Minister Muhammad Aurangzeb introduced the Pakistan Government Rightsizing Reforms 2025, emphasizing that abolishing vacant roles will boost efficiency across public departments. By targeting redundancies and merging overlapping entities, the government hopes to strengthen its economic position while upholding employee rights at all grades. Furthermore, this restructuring aligns with the International Monetary Fund (IMF) loan benchmarks, positioning Pakistan favorably in its $7 billion loan program.
Phased Implementation for Effective Change
Phase One
In the first phase, already underway, the Ministry of Kashmir Affairs was merged with the Ministry of States and Frontier Regions (SAFRON). Additionally, the Capital Administration and Development Division (CADD) was abolished, thereby cutting eight entities down to four. Other ministries, including IT & Telecommunication and Industries & Production, also witnessed significant reductions in associated entities. These strategic moves reflect the government’s commitment to immediate and tangible changes.
Phase Two
Currently in progress, Phase Two focuses on the Ministries of Science and Technology, Commerce, Housing and Works, and National Food Security. Authorities plan to close 25 entities, merge 20, and restructure nine. Consequently, this phase is expected to bring further consolidation and operational improvements to core government functions.
Phase Three
The final phase under review addresses five ministries, including Education and Professional Training, Finance Division, and Power Division. Recommendations for these ministries will soon be submitted for federal approval. Once approved, additional mergers and closures will streamline remaining administrative operations.
Economic and Fiscal Impacts
By eliminating contingency roles and outsourcing non-core services—such as cleaning and plumbing—the government aims to optimize resource allocation. Additionally, these rightsizing reforms help satisfy the conditions set by the IMF. This will ensure the continuation of critical external funding. Consequently, Pakistan stands to bolster its fiscal footing and reduce its budget deficit.
Structural Adjustments and Accountability
The reforms involve amending the Civil Servants Act to modernize governance and foster accountability at all levels. Furthermore, the Treasury Single Account framework will grant the Finance Ministry real-time visibility into federal funds, improving cash management. These structural adjustments, coupled with quarterly progress updates, underscore the government’s commitment to transparency and public trust.
Balancing Reforms and Employee Rights
While the Pakistan Government Rightsizing Reforms 2025 herald a dramatic shift in governance structures, the government assures employees that their rights and benefits will remain protected. According to Salman Ahmad, Managing Director of McKinsey Pakistan, uniform implementation of these reforms is essential to maintaining workforce stability. Ultimately, the initiative aims to achieve up to 95% of the proposed changes by June 30, 2025—leading Pakistan toward a more sustainable fiscal future.
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