Federal Minister for Finance and Revenue Muhammad Aurangzeb announced that vacant positions dissolved include 150,000 roles in a significant reform initiative. This decision includes the dissolution of one ministry and the merger of two others, aiming to streamline operations and reduce expenditures.
In a media briefing, Muhammad Aurangzeb explained that following the federal cabinet’s approval, the rightsizing committee determined that scrapping 60% of vacant positions would facilitate cost reductions. He confirmed that the Capital Administration and Development Division (CADD) ministry would be dissolved; putting to rest any speculation regarding which ministry would be affected.
A spokesperson from the government revealed on 1 September 2024 that numerous high-ranking officials would face job cuts. The rightsizing committee has already reviewed six ministries in this initial phase of reform, with plans for one ministry’s dissolution and the merging of two others.
On 16 August 2024, the cabinet committee on institutional reforms recommended the curtailment of 150,000 vacant positions, a ban on contingency recruitment, and the outsourcing of non-core services like cleaning. This strategy aims to gradually phase out many roles within grades 1 to 16.
In a meeting chaired by Prime Minister Shahbaz Sharif, the committee presented its recommendations for rightsizing federal departments, with the Ministry of Finance tasked to oversee the cash balances of other ministries.
The committee detailed recommended reforms for five federal ministries: the Ministry of Kashmir Affairs and Gilgit Baltistan, the Ministry of State and Frontier Regions, the Ministry of Information Technology and Telecommunication, the Ministry of Industry and Production, and the Ministry of National Health Services.
During the briefing, Aurangzeb emphasized that the government’s measures, including securing an International Monetary Fund (IMF) bailout package, are essential for achieving economic stability. He mentioned that expanding the tax net is a priority, revealing that currently, only 14% of retailers are registered for sales tax.
“We will be compelled to block utility services for non-registered individuals,” he warned, asserting that the government has eliminated all tax exemptions. “It is not fair to treat taxpayers and non-taxpayers alike. We have no option but to expand the tax net,” he added.
Additionally, Muhammad Aurangzeb highlighted the need to enhance the efficiency of the Federal Board of Revenue (FBR), announcing that 2,000 chartered accountants and tax audit experts will be recruited to improve audit capabilities.
