Prime Minister Shehbaz Sharif Champions Institutional Reforms to Alleviate Fiscal Pressure


Islamabad: Prime Minister Shehbaz Sharif today affirmed the government’s commitment to instituting reforms aimed at reducing the fiscal burden on the national exchequer and enhancing public services. The announcement came during a meeting focused on rightsizing government operations to curtail expenditure.



According to Ministry of Information and Broadcasting, the Prime Minister stressed the need for immediate action regarding underperforming state institutions, suggesting closure or privatization as viable solutions. He also declared his intention to personally oversee the Small and Medium Enterprises Development Authority (SMEDA), directing its integration under the Prime Minister’s Office to bolster support for small and medium-sized enterprises.



The Federal Government’s Committee on Rightsizing, led by the Finance Minister, presented several proposals during the meeting. These included the elimination of approximately 150,000 vacant government posts, outsourcing non-core services such as janitorial duties, and enforcing a complete recruitment ban on contingency positions. Additionally, the Finance Ministry is set to supervise the cash balances of various ministries to ensure fiscal discipline.



Significant restructuring recommendations for five key ministries were also discussed. These proposals involve merging the Ministry of Kashmir Affairs and Gilgit-Baltistan with the Ministry of States and Frontier Regions and either shutting down, privatizing, or transferring 28 organizations under these ministries to federating units. The committee further proposed merging 12 institutions within these ministries to streamline operations.



Prime Minister Sharif concluded the session by instructing officials to secure Federal Cabinet approval for these reforms and to devise a detailed plan for their implementation.