The federal government of Pakistan has unveiled an ambitious plan to collect over Rs70 billion in annual savings through the implementation of 100 reforms across 24 ministries and departments, according to Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production. This initiative, driven by the need to streamline operations and reduce fiscal strain, is part of a broader effort to enhance administrative efficiency and align with international financial obligations.
Annual Savings Details
The reforms focus on restructuring federal operations, eliminating redundancies, and optimizing resource allocation. Key measures include the merger of ministries, such as Kashmir Affairs and SAFRON, and the reduction of entities under various departments. For instance, the Ministry of Industries and Production will see its entities slashed from 31 to six, while the Information Technology and Telecommunication Ministry will reduce from 11 to 10. Additionally, over 150,000 vacant government positions, representing 60% of the federal workforce, are set to be abolished, with non-core services like cleaning and plumbing outsourced to private entities.
IMF Agreement
This overhaul is closely tied to Pakistan’s $7 billion, 37-month loan agreement with the International Monetary Fund (IMF), signed in July 2024. The reforms aim to meet IMF benchmarks for fiscal sustainability, with a completion target set for June 30, 2025. The government has also introduced a Treasury Single Account framework to improve financial transparency, allowing real-time monitoring of federal funds and reducing reliance on costly commercial bank borrowing.
Public response, as seen on social media platforms like X, reflects cautious optimism. Some users praise the government’s commitment to fiscal discipline, while others express concerns about potential job losses and the challenges of implementing such extensive changes. The Finance Ministry has emphasized that employee rights across all grades will be protected, with the restructuring designed to enhance service delivery and support long-term economic stability.
The initiative also includes amendments to the Civil Servants Act to modernize governance and align with contemporary needs. By prioritizing citizen-centric reforms, the government aims to reduce the financial burden on the state while fostering a more efficient public sector. With quarterly progress updates planned, the coming months will be pivotal in determining the success of this transformative agenda.
Published in SouthAsianDesk, July 26th, 2025
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