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Shehbaz pushes ahead with federal downsizing, orders review of Government cuts

Prime Minister Shehbaz Sharif directs officials to complete federal right-sizing reforms within a month, audits abolished posts, and targets savings—while reviewing privatisation progress and further efficiency measures.

Web Desk

Web Desk

July 28, 2026

2 min read
Shehbaz pushes ahead with federal downsizing, orders review of Government cuts

Prime Minister Shehbaz Sharif on Tuesday ordered a fresh push to implement the federal government's right-sizing programme, directing officials to complete the remaining reform proposals within one month and eliminate unnecessary positions across government institutions to improve efficiency.

The directives were issued during a meeting reviewing progress on the government's restructuring drive, where the prime minister also instructed authorities to commission a third-party audit of the institutions and posts that have already been abolished under the initiative.

According to the Prime Minister's Office (PMO), Shehbaz said removing redundant positions was a central element of the government's wider reform agenda and stressed that implementation of the right-sizing programme should be accelerated to improve the overall performance of the public sector.

During the briefing, officials informed the prime minister that the restructuring measures had already lowered the ratio of the federal civilian government's expenditure to gross domestic product (GDP). They also said vacant positions in multiple ministries and government departments had been eliminated as part of the exercise.

The meeting was told that the Utility Stores Corporation, Pakistan Public Works Department and Pakistan Agricultural Storage and Services Corporation had already been shut down under the government's restructuring plan, generating savings for the national exchequer.

Officials further informed the meeting that the next phase of the initiative would focus on state-owned enterprises (SOEs) and autonomous bodies, with proposals currently being finalised for their right-sizing.

Separately, the government reviewed progress on its privatisation agenda. The PMO said participants were informed that Pakistan International Airlines (PIA) and First Women Bank Limited had been privatised, while preparations were continuing for the privatisation of several other state-owned enterprises.

The prime minister also called for greater adoption of modern technology and improved training across government institutions, saying both were essential to raising administrative capacity and delivering more efficient public services.


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