On Friday, the Cabinet Committee on Institutional Reforms, led by Prime Minister Shahbaz Sharif, recommended eliminating 150,000 vacant positions, banning contingency recruitment, and outsourcing non-core cleaning and janitorial work. This initiative, aimed at reducing the public sector’s size and expenses, will gradually eliminate many positions in grades 1 to 16.
During the meeting, the committee also advised the Ministry of Finance to monitor the cash balances of other federal ministries. It provided detailed recommendations for rightsizing in five key federal ministries: Kashmir Affairs and Gilgit-Baltistan, State and Frontier Regions, Information Technology and Telecommunication, Industry and Production, and National Health Services.
The committee proposed a significant reorganization, including the Ministry of Kashmir and Gilgit-Baltistan merger with the Ministry of State and Frontier Regions (SAFRON). The plan also calls for closing 28 institutions across these ministries, transferring the Privatization Ministry and some others to federal units, and consolidating 12 institutions within these ministries.
Prime Minister Sharif, emphasizing the urgency of curtailing government expenditure, instructed the Federal Cabinet to approve these reforms and develop a comprehensive implementation plan. He stressed the importance of improving public service performance and reducing the fiscal burden on the national treasury, directing that underperforming institutions be either shut down immediately or privatized without delay.
The prime minister also declared his intention to personally oversee the Small and Medium Enterprises Development Authority (SMEDA), which supports small and medium enterprises, and ordered its integration into the Prime Minister’s Office.
