ISLAMABAD: The government announced that five ministries including Ministry of Communications, Ministry of Railways, Ministry of Poverty Alleviation and Social Safety, Revenue Division and Petroleum Division and their attached departments would be examined for rightsizing during the fourth wave.

The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired the meeting of the Committee on Rightsizing the Federal Government (Wave-IV), here on Friday.

The meeting was attended by Federal Minister for Communications Abdul Aleem Khan, members of the National Assembly, and federal secretaries of the relevant ministries and divisions.

Govt entities: Tarar underscores need for rightsizing

The Minister for Finance and Revenue highlighted and appreciated what he called a “whole-of-the-government” approach adopted by the ministries and their in-charge ministers for successfully completing first three waves of the rightsizing exercise aimed at examining 43 ministries and nearly 400 attached departments of the federal government for the purpose of rightsizing before the end of the financial year.

The minister also said the implementation of the decisions taken by the committee and subsequently endorsed by the federal cabinet so far would be followed up for implementation by the sub-committee of the Rightsizing Committee, and the main committee would intervene only in case of matters requiring escalation.

The chair announced that during the fourth wave, five ministries namely, Ministry of Communications, Ministry of Railways, Ministry of Poverty Alleviation and Social Safety, Revenue Division and Petroleum Division and their attached departments would be examined for rightsizing as per mandate of the Committee.

During the subsequent proceedings, the Ministry of Communications gave a detailed presentation to the Cabinet body on the functions, organisational structure and possibilities of semi-privatisation and PPP models for various projects and initiatives of the ministry. The committee was told that in the spirit of rightsizing, the Ministry of Communications had already abolished all dying posts.

Federal Minister for Communications Abdul Aleem Khan also gave a perspective on the core functions of the ministry and how its departments, particularly National Highways Authority (NHA), could be made profitable. He said the NHA could become a major revenue spinner for the government if its resources were diverted to construction of revenue-based motorways like the M-6 leading from Sukkur to Karachi port.

Aurangzeb has recently announced to abolish 150,000 vacant posts, while vowing to complete rightsizing of 43 ministries and their 400 attached departments — a structural benchmark set by the International Monetary Fund (IMF) by end of current fiscal year, to reduce volume, expenditures and improve efficiency of the federal government.

The high-powered committee established on June 21, 2024, for rightsizing is reviewing 43 ministries and 400 attached departments, which currently account for Rs876 billion in annual spending.

The federal government has embarked on a bold and transformative rightsizing initiative to streamline its operations, eliminate redundancies, and reallocate resources for better public service delivery, he added.

Sharing key decisions and outcomes, the minister said that to streamline government structure, over 150,000 vacant posts (60 percent) will be abolished or declared redundant. Contingency roles and lower-grade positions will be significantly reduced. Non-core services such as cleaning, plumbing, and gardening will be outsourced.

Under wave-1, six ministries including Kashmir Affair and Gilgit-Baltistan, SAFRON; Information Technology and Telecom; Industries and Production; National Health Services Regulations and Coordination; CADD were processed. It was decided to merge ministries of Kashmir Affairs and Gilgit-Baltistan, and SAFRON, whereas, CADD was abolished, adding there were 80 entities associated with these ministries, theses have now been reduced to 40.

Kashmir Affairs and GB and SAFRON would be merged, while CADD be abolished. The number of entities is to be reduced from eight entities to four. The number of entities in IT and Telecom would be reduced from 11 to 10. In Industries and Production it would be reduced from 31 to six, while in National Health Services from 30 to 20.

In wave II, five ministries are under implementation, including; Ministry of Science and Technology, Commerce Division, Housing and Works and National Food Security and Research. Of these, 25 entities shall be wind up, 20 reduced and nine merged, he said.

In wave III of rightsizing, Aurangzeb said that the government has notified five ministries i.e. Federal Education and Professional Training, Information and Broadcasting, Natural Heritage and Culture, Finance Division and Power Division. He said that the process of rightsizing shall be completed by June 30, 2025.

Copyright Business Recorder, 2025