The federal government has announced a ban on new recruitments in federal institutions, the provision of medical treatment abroad at state expense, and the acquisition of new vehicles.
According to a notification from the finance ministry, all positions that have been vacant for three years are to be abolished. “No new hiring will occur except for temporary positions that have been open for over a year,” the notification stated.
This move comes amid criticism regarding the government’s expenditure cuts. The South Asian country is seeking a $7 billion bailout from the International Monetary Fund (IMF) to boost its economy.
In July, Pakistan and the IMF agreed on a 37-month loan program, which is pending approval from the IMF’s executive board and confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.
Recently, economist Dr. Kaiser Bengali resigned from all his official positions, expressing frustration with the government’s cost-cutting policies, which he believes are disproportionately affecting lower-level employees rather than higher-ranking officials.
In response, the federal government clarified that the restructuring effort includes all positions from BS-1 to BS-22, not just those in lower grades. The government estimates that around 60,000 positions, including those in higher grades, may be deemed surplus.
Additionally, the government has imposed a ban on foreign trips funded by state resources and the purchase of new vehicles, with exceptions for ambulances, medical aid vehicles, and buses for educational institutions.
These measures are part of a broader strategy to reduce government expenditures, as decided by the federal cabinet. Earlier this month, the Cabinet Committee on Institutional Reforms recommended eliminating 150,000 vacant positions, banning contingency recruitment, and outsourcing non-core services such as cleaning and janitorial work, which would affect many positions in grades 1 to 16. The committee also proposed closing 28 institutions, transferring some ministries to federal units, and merging 12 institutions within those ministries.
In June, Prime Minister Shehbaz directed the dissolution of the Pakistan Public Works Department (Pak PWD) due to its long-standing issues of poor performance and corruption. The federal government is committed to cutting expenditures to improve the economy.
Finance Minister Muhammad Aurangzeb recently told Reuters that Pakistan is making good progress with the IMF and anticipates board approval for the new loan program in September.
