FinMin vows to complete rightsising plan of 43 ministries by June-end; 150,000 vacant posts abolished

Islamabad (APP): Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Tuesday expressed confidence in completing the analysis and implementation plan of rightsizing 43 ministries and their 400 attached departments by June 30 of the current fiscal year to reduce expenditures and improve efficiency of the government.

“During course of this fiscal year, before June 30, all of this process will be done, All 42 ministries, (As CAD has already been abolished) and their attached departments, their recommendations and implementation (will be done),” the minister said at a press conference while sharing the six-month performance of the High-powered Committee on Rightsizing of the Federal Government.

He was accompanied by the Convener of the National Parliamentary Taskforce on Sustainable Development Goals (SDGs), Bilal Azhar Kayani and Ambassador at Large Dr Salman Ahmad, who is heading the Implementation Committee.

Briefing the journalists, the minister said, it had been decided that 60% of vacant regular posts (that have not come in payroll), which stood at 150,000, would be abolished or declared as dying posts, creating a real a real financial impact. “All is being done after proper ratification from the federal cabinet.”

The committee, he said, also decided to outsource general non-core services including cleaning, plumbing and gardening to bring efficiency, adding the number of contingency posts would also be reduced.

He said it has also been decided that the Ministry of Finance would have live visibility on the cash balances of all government entities. “It cannot happen that at one side we are borrowing and on other government departments have idle cash balances.”

However, he added, it has nothing to do with people, but to improve efficiency, adding it was being implemented in all ministries.

He said, 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; Capital Development Authority (CAD) were processed.

The minister said the committee has decided to merge the Ministries of Kashmir Affairs and Gilgit-Baltistan, and States and Frontier Regions (SAFRON) whereas CAD was abolished, adding there were 80 entities associated with these ministries, theses have now been reduced to 40.

Minister Aurangzeb said that under Wave 2, the committee considered the Ministry of Science and Technology, the Commerce Division, the Ministry of Housing and Works, and the Ministry of National Food Security and Research. Out of their 60 entities, 25 would be wound-up, 20 reduced and nine merged or shifted.

He said that under the ongoing Wave 3, five ministries have been notified, including the Federal Ministry of Education and Professional Training, Information and Broadcasting, National Heritage and Culture, Finance Division and Power Division.

Sharing details about the committee, the minister said that in June of last year, the Prime Minister had constituted the committee, headed by the Finance Minister, with ministers, MNAs, representatives from coalition partners, the private sector, and high-level officials as its members.

He said the body’s Terms of Reference (ToRs) were aimed at reducing federal government expenditures and improving its efficiency.

He said the committee was tasked with reviewing the performance of different ministries and their entities over the last thirty to forty years to decide whether they should be rolled back or considered for improved efficiency.

Aurangzeb said that the committee decided to proceed in a phased manner for the efficient implementation of the recommendations, considering 5-6 ministries in batches.

He stated that all the ministries and representatives of the attached departments were given a full opportunity to explain their points of view, adding that the discussions on each entity had taken several days.

The minister said that when a decision was made by the committee regarding any ministry/entity, it was forwarded to the Prime Minister to obtain endorsement from the Federal Cabinet. After ratification, it came back for the implementation plan, he added.

In his opening remarks, the minister said that the government had achieved macroeconomic stability, which would now lead the country towards sustainable growth, steering it away from the ‘boom and bust’ cycle.

He said the incumbent government had changed the fundamental DNA of the economy towards export-led growth by engaging the private sector to lead the economy.

He also mentioned that the government was making structural reforms, improving taxation, and ensuring end-to-end digitalisation.

Aurangzeb said that the Faceless Customs Assessment System (FCAS), under the Federal Board of Revenue (FBR) transformation plan, would be formally inaugurated by the Prime Minister on Wednesday, adding its benefits had already started to materialize.

Answering a question, the minister said with a strong conviction that there would be a significant reduction in government expenditures, which would be reflected in the next federal government budget.

To a question he said, Aurangzeb said the government wanted to take things in the right direction whether the International Monetary Fund (IMF) say says or not. He said although rightsizing was an IMF structural benchmark; however, government was doing it because it is the requirement of the country.

The minister, while answering yet another question, said that the rightsizing would be done and implementation would be ensured. All departments and all ministries are under review, he added “We have taken that bold step which no administration and no government was able to take.”

Speaking on the occasion, Bilal Kiyani said main aim of rightsizing was not only to reduce expenditure but also improve efficiency and remove duplication. He said, the rightsizing process was being done diligently and comprehensively.