Islamabad: In a significant restructuring move, the Federal Cabinet has approved the merger and dissolution of 82 state-owned enterprises (SOEs). This decision aims to enhance efficiency and governance through digitization and smart management. The cabinet, led by Prime Minister Shehbaz Sharif, also established a committee to safeguard the interests of employees affected by these changes.
According to Ministry of Information and Broadcasting, the Rightsizing of the Federal Government Committee’s recommendations, which were approved during today’s cabinet meeting, mark the beginning of a major reform process across six ministries in the first phase. This initiative is expected to streamline operations, optimize the use of human capital, and eliminate delays in the implementation of government decisions.
The Cabinet was informed that these measures have already resulted in significant cost savings, including a $130 million reduction through the cessation of Urea imports and the stabilization of gas supply to local Urea factories. The Prime Minister lauded the efforts of the Ministries of Finance, Energy, and National Food Security for ensuring an uninterrupted supply of Urea for the upcoming Rabi cropping season.
Furthermore, the Cabinet received a comprehensive update on the execution of austerity measures, reflecting Prime Minister Sharif’s directive to cut government spending. These measures include a voluntary salary waiver by cabinet members, restrictions on new government vehicle purchases, a ban on non-essential foreign travel, and limits on medical treatment abroad.
The meeting also addressed the recent terrorist attacks in Balochistan, with the Cabinet strongly condemning the violence and advocating for decisive action against those responsible. A moment of remembrance was held for the victims of these attacks.
The continuation of these stringent austerity measures and the restructuring of state enterprises underscore the government’s commitment to fiscal prudence and enhanced public service delivery.