The federal government’s decision to close 33 government institutions and eliminate 150,000 permanent positions

ISLAMABAD (Newsdesk) The federal government has started a major restructuring plan to close 33 state-owned enterprises (SOEs), eliminate 60 percent of vacant regulatory positions (up to 150,000) and outsource non-core services. .

Looking at six ministries in the first phase, the process aims to reduce the size and cost of the federal government, according to the Business Recorder It was founded by Shahbaz Sharif.

The main tasks of the committee include the identification of functions that can be transferred to the private sector, the definition of roles that belong to provincial jurisdictions, and the development of a plan for the management of human resources and assets.

The first phase focuses on six ministries: Administration and Capital Development, Industries and Production, IT and Telecom, Kashmir and Gilgit-Baltistan Affairs, National Health Services, and Border States and Regions.

Extensive consultations were conducted with key stakeholders to assess the financial, institutional and workforce implications of the proposed changes. The World Bank also provided expertise.

Recommendations for this phase include eliminating 60 percent of vacancies, outsourcing non-essential services such as cleaning and plumbing, and creating a committee to handle employee grievances affected by the restructuring.

The committee also recommended amendments to the Civil Servant Act and the formation of a Civil Service Reforms Committee to support the process On August 16, 2024, the Prime Minister approved these recommendations, with the final instructions issued on August 19.

The plan also includes the merger or transfer of nine institutions and the closure of 33 others. In the second phase, more ministries, including trade, science and technology, and national food security, will undergo similar reviews.