Islamabad: Federal Finance Minister Mohammad Aurangzeb announced significant cuts in the size of the federal government, stating that 80 government agencies have been reduced by half and 150,000 vacant positions have been eliminated as part of cost-cutting measures.
Addressing a press conference in Islamabad, Aurangzeb explained that a committee was established by Prime Minister in June 2024 to oversee the rightsizing of the federal government. The committee’s mandate initially covered 45 ministries and 400 associated agencies.
“We have decided to gradually reduce the size of the federal government,” the finance minister stated. “The number of federal ministries and departments has been halved, and we are working to complete cost-cutting measures by June 30. We have already abolished 150,000 vacant positions and are targeting a 60% reduction in vacant posts.”
Aurangzeb also outlined that in the first phase, departments related to Kashmir, Gilgit-Baltistan, and the Ministry of Safron would be merged. The total number of federal agencies would be reduced from 80 to 40.
“Our aim is to reduce the federal government’s expenditures, which total Rs 900 billion,” he added.
The finance minister emphasized that the goal of rightsizing is not only to cut expenses but also to improve efficiency. He questioned the rationale of keeping hospitals under the federal government, suggesting that they should be transferred to provincial control.
