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Wednesday, January 8, 2025

Minister Says Rightsizing to Reduce Expenditures

Islamabad (TDI): Finance Minister Senator Muhammad Aurangzeb Tuesday said the initiative of rightsizing of the federal government will be completed by the end of this fiscal year for reducing expenditures and enhancing efficiency.

Speaking at a press conference in Islamabad, he elaborated a comprehensive overview of the work accomplished so far in this regard.

On the decisions about the rightsizing, the Minister said 150,000 vacant posts have been abolished after approval by the Federal Cabinet.

“The noncore services including gardening, cleaning and plumbing will be outsourced by the departments to bring more efficiency, while the contingency posts will also be reduced to an extent.”

Read More: Finance Minister, World Bank Team Discuss Economic Reforms

Aurangzeb stressed that the Finance Ministry would ensure live visibility on the cash balances of all government entities.

The Finance Minister mentioned that in the phaseI, decisions were taken with regard to six Ministries including Kashmir Affairs and Gilgit Baltistan, SAFRON, IT and Telecom, Industries and Production, National Health Services and Capital Administration and Development Division (CADD).

CADD has been abolished, he said, adding Kashmir Affairs and Gilgit Baltistan have been merged, while the attached entities have been reduced from eighty to forty.

And in the Phase II, he said that the Ministries of Science and Technology, Commerce, Housing and Works, National Food Security were considered.

He mentioned out of sixty entities of these ministries, twenty-five will be wound up, twenty will be reduced and nine will be merged.

The Finance Minister resolved that implementation of these decisions will be ensured.

Minister on Advancement of the Initiative

About third phase, he said that the recommendations relating to five Ministries including Federal Education and Professional Training, Information and Broadcasting, National Heritage and Culture, Finance Division and Power Division will be sent to the Federal Cabinet for final approval.

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The minister committed to take the country towards sustainable economic growth on the foundation of macroeconomic stability.

Besides the highly noted press conference, the Finance Division also issued a press release, which stated that the government has embarked on a bold and transformative rightsizing initiative to streamline its operations, eliminate redundancies, and reallocate resources for better public service delivery. .

Under the leadership of the Prime Minister and supervision of the Finance Minister, a High-Powered Committee was established on June 21, 2024, which reflects the government’s commitment to fiscal responsibility, operational efficiency, and citizen-centric governance, it said.

“The recommendations of the Committee are based on the merit and needs of the Departments and positions.”

Clarifying objectives of the initiative, it said that the rightsizing aims at optimizing Government Functions by identifying functions that can be outsourced or privatized while maintaining public benefit besides eliminating overlaps and duplication, particularly in post-devolution areas with provinces.

According to the statement it will enhance value for public spending through efficiency reforms, including digitization.

The official statement provided details of all the departments and ministries to be rightsized along with explanations of the measures taken in this regard.

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