Federal government abolishes 150,000 posts as cost-cutting measure

The federal government has abolished 150,000 posts in federal ministries and departments to reduce expenditure, says Finance Minister Muhammad Aurangzeb.Speaking to media in the capital on Tuesday, Aurangzeb stated that 60pc of vacant positions, where no hiring had occurred, had been eliminated, with no plans to recruit for these posts in the future.He said the move was part of a broader effort to cut government expenses and ensure sustainable economic growth, adding that structural reforms in the tax system were already under way, with a greater role envisioned for the private sector in economic development.As part of the rationalization initiative, the number of subordinate bodies under federal ministries was also halved from 80 to 40, with some institutions merged and two ministries set to undergo a merger.The finmin also outlined the next phase of reforms, which will see 25 out of 60 subordinate bodies under four ministries – Science and Technology, Commerce, Housing and Works, and National Food Security – abolished.Another 20 would face reductions, while nine would be merged. Service-related positions are being outsourced to enhance efficiency.Calling it a significant step towards the government’s rightsizing goals, Aurangzeb said the economy was improving, and the government’s targets were on track.