ISLAMABAD: The federal cabinet, on Tuesday, took significant steps towards institutional reforms, focusing on enhancing government efficiency and modernising state institutions with the merger and dissolution of 82 state-owned enterprises (SOEs).
The meeting was chaired by Prime Minister Muhammad Shehbaz Sharif, in which, the cabinet endorsed the recommendations of the Rightsizing of the Federal Government Committee, led by the finance minister, which involves the consolidation of 82 government entities into 40 streamlined institutions.
The primary goals include digitisation, smart management, and transparent governance to ensure better service delivery to the public.
The reforms target six key ministries in the initial phase, where unnecessary delays in policy implementation and decision-making are being addressed.
The cabinet also approved measures to protect the interests of employees potentially affected by these changes, establishing a committee to oversee their welfare.
The cabinet session strongly condemned the recent terrorist attacks in Balochistan, where innocent civilians and security forces were targeted. Offering prayers for the martyrs, the cabinet expressed determination to identify and take swift action against the perpetrators.
Prime Minister Shehbaz Sharif underscored that national security remains the government’s top priority and directed relevant authorities to ensure that the attackers are swiftly brought to justice.
The cabinet also reviewed the ongoing efforts to ensure the uninterrupted supply of urea fertiliser for the upcoming Rabi season. The prime minister appreciated the coordinated decisions of the finance minister and other relevant officials, which have enabled a steady supply of domestic urea by securing uninterrupted gas for fertiliser plants. This approach saved $130 million that would have been spent on imports.
Prime Minister urged all ministries to take similar initiatives to save public funds and contribute to economic recovery. “In these challenging times, every penny saved is a step towards stabilising the economy,” he emphasised.
The cabinet approved the Ministry of Housing and Works’ recommendations to dissolve the Pakistan Public Works Department (Pak PWD) and transfer its ongoing projects and staff to other ministries and provincial governments. This decision ensures that development projects under the PSDP continue without disruption. The prime minister highlighted that improving governance and institutional efficiency remains a core focus of the government’s reform agenda.
Progress on the government’s austerity drive was also reviewed during the meeting. Cabinet members have voluntarily renounced their salaries, and strict restrictions have been imposed on the purchase of non-essential government vehicles, new machinery, and unnecessary foreign trips. These measures are part of the broader vision to reduce government expenses and redirect resources to critical areas.
Prime Minister Shehbaz reiterated that Pakistan cannot afford the luxury of extravagant spending by the elite while ordinary citizens face economic hardships. He vowed to safeguard the nation’s resources and urged ministers to enforce the austerity measures within their respective ministries.
The cabinet also ratified the decisions made by the Economic Coordination Committee (ECC) during its August 22, 2024 meeting. These decisions are expected to provide economic relief, support key sectors, and address fiscal challenges.
Copyright Business Recorder, 2024
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