The federal cabinet approved the abolition and merger of 82 departments and agencies under six federal ministries and divisions, consolidating them into 40 entities in the first phase of the rightsizing initiative.
The cabinet meeting, chaired by Prime Minister Shehbaz Sharif, also established a committee to propose measures for protecting the rights of employees affected by these mergers and abolitions.
The 82 entities being merged or abolished will be transformed into more effective institutions through digitization, smart management, efficient governance, and transparency.
The cabinet formally approved the continuation of the austerity policy, which includes a complete ban on the purchase of new vehicles, equipment, fresh employment, and foreign visits at public expense.
Prime Minister Shehbaz Sharif said that the government was introducing smart management systems and digitization to modernize the country’s governance structure according to international best practices. He emphasized that these reforms are a priority for improving governance and institutional efficiency.
Finance Minister Muhammad Aurangzeb presented the recommendations of the committee on rightsizing the federal government, noting that the first phase has begun in six ministries.
These changes are expected to enhance performance, improve the utilization of human resources, and reduce unnecessary delays in policymaking and implementation by focusing on essential departments only, he added.
The reforms committee recommended the elimination of around 150,000 vacant positions and proposed outsourcing non-core functions such as cleaning and janitorial services.
The committee also suggested a complete ban on recruitment for contingency posts and recommended that the finance ministry supervise the cash balances of various ministries.
