Cabinet Approves Abolition and Merger of 82 Departments

82 Departments

ISLAMABAD: The federal cabinet, under the leadership of Prime Minister Shehbaz Sharif, approved the abolition and merger of 82 departments and agencies under six federal ministries and divisions, consolidating them into 40 entities as part of the initial phase of the federal government’s rightsizing initiative.

This decision, made during the cabinet meeting on Tuesday, marks a significant step towards streamlining government operations and enhancing efficiency across the board.

To safeguard the rights of the employees affected by these mergers and abolitions, the cabinet established a dedicated committee tasked with proposing measures to ensure that the workforce is adequately protected during this transition.

The committee’s role will be crucial in addressing concerns related to job security and fair treatment of those impacted by the restructuring process.

In addition to these structural changes, the cabinet reaffirmed its commitment to the continuation of the austerity policy, which includes a comprehensive ban on the purchase of new vehicles and equipment, the hiring of new employees, and foreign visits funded by public expense. This policy is seen as essential in reducing government expenditures and improving fiscal discipline.

Prime Minister Shehbaz Sharif emphasized the government’s focus on modernizing the country’s governance structure through the introduction of smart management systems and digitization.

He highlighted that these measures are being implemented with the aim of aligning Pakistan’s governance with international best practices and ensuring that institutional reforms are prioritized.

The prime minister reiterated the importance of efficient governance, transparency, and swift implementation to better serve the common man.

Finance Minister Muhammad Aurangzeb presented the committee’s recommendations on the rightsizing of the federal government, noting that the implementation of these recommendations had already begun in six ministries.

The finance minister explained that the consolidation of these 82 entities would result in stronger institutions through digitization, smart management, and streamlined governance.

This, in turn, would lead to better utilization of human resources, improved performance, and reduced delays in decision-making processes.

As part of the broader reforms, the committee suggested the elimination of around 150,000 vacant positions and proposed outsourcing non-core functions such as cleaning and janitorial services.

The gradual phasing out of posts in grades 1 to 16 was also recommended, along with a complete ban on recruitment for contingency posts. Furthermore, the committee advised that the Ministry of Finance should maintain supervision over the cash balances of various ministries to ensure financial prudence.

The cabinet also reviewed and endorsed the austerity measures implemented by the previous PML-N government, which included voluntary salary cuts for cabinet members, a ban on the purchase of vehicles except in urgent cases like ambulances, and restrictions on foreign travel and medical treatments at public expense.

These measures have reportedly resulted in significant savings, including $130 million from halting urea imports and ensuring uninterrupted gas supply to domestic urea factories.

Under the overarching rightsizing directive, the government is also focusing on reducing regulatory bodies related to devolved subjects such as health and education, containing transportation expenses, and phasing out non-executive staff.

The legislative process to implement these measures will begin promptly, involving amendments to federal and provincial laws, as many of the entities targeted for reform were established through legislative instruments.

As part of the restructuring, federal universities and hospitals will be transitioned to a Public-Private Partnership model, managed by corporate boards to enhance profitability and market linkage.

There will be a freeze on hiring staff for these institutions, with exceptions made only for academic staff, who will be recruited on a lump-sum remuneration basis, avoiding future liabilities on the federal exchequer.

Finally, the federal government has announced a freeze on the recruitment of employees in grades 1 to 16, with plans to gradually abolish such posts as they become vacant.

Officer cadre personnel will be encouraged to adopt artificial intelligence and digital tools, reducing their dependence on support staff. Additionally, the staff of devolved ministries will be transferred to a surplus pool, with options for relocation to provincial governments or other federal organizations.

These sweeping changes aim to enhance the efficiency and effectiveness of Pakistan’s federal government, aligning it with contemporary governance standards and fiscal responsibility.