Notification issued: Contingency posts axed for cost savings: FD

Updated 06 Nov, 2024

ISLAMABAD: The Finance Division notified that all contingency posts eliminated as part of efforts to reduce administrative expenditures.

The division issued a notification which noted as; the decision of the federal cabinet taken in case No 231/28/2024 dated 27.8.2024 circulated by the Cabinet Division vide memorandum No 28/CM/2024-D dated 3rd September 2024, is reproduced below: “All Contingency posts to be eliminated”.

Finance Division has asked all ministries/divisions and their subordinate offices to ensure the compliance of the direction of the Cabinet.

Govt embarks on drive to contain its expenditure

The Division in 6th September 2024, notified that in pursuance of the decision taken in case No 172/21/2024 dated 12 06.2024, the federal cabinet directed that:- except in the case of the Armed Forces, Civil Armed Forces and other law enforcement and security related agencies, recruitment to vacancies in the existing posts of the Federal Government in BS-I to BS-16 will be made inter alia with the prior approval of the Austerity Committee constituted from time to time by the Finance Division, other than those in the case of which the recruitment process has already been initiated.

In a significant move to cut administrative costs, the government has announced plans to eliminate 150,000 vacant positions, dissolve one ministry, and merge two others.

During a press briefing in September, Finance Minister Mohammad Aurangzeb announced that following federal cabinet’s approval, a rightsizing committee decided to scrap 60 percent of the vacant posts, a move aimed at reducing government expenditures significantly.

The Capital Administration and Development Division (CADD) will be dissolved as part of this initiative.

Copyright Business Recorder, 2024

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