ISLAMABAD: The federal government has begun implementing expenditure-cutting measures under its rightsizing programme, including abolishing or reclassifying up to 60% of vacant regular posts across ministries and attached departments.
The measure implements an earlier Federal Cabinet decision to reduce the government’s administrative footprint and recurring expenditure. Official records show the cabinet approved the 60% reduction in vacant regular posts in August 2024 as part of the federal rightsizing exercise.
The policy applies to vacant positions rather than a blanket dismissal of serving federal employees. Finance Minister Senator Muhammad Aurangzeb previously said the 60% reduction plan covered around 150,000 vacant positions.
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The government has continued the rightsizing exercise through 2026. In an August 10 meeting, Aurangzeb reviewed implementation across eight waves covering federal ministries and attached departments and called for faster execution of recommendations already approved by the cabinet.
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Pakistan is also implementing its broader fiscal and structural reform programme alongside its $7 billion Extended Fund Facility (EFF) with the International Monetary Fund. The IMF’s fourth EFF review is scheduled for September 2026 and will assess performance against end-June targets and other programme commitments.
Pakistan and the IMF are expected to begin the fourth review and Article IV discussions in Karachi and Islamabad around September 22-23, with talks likely to continue for about two weeks.
