Prime Minister Shahbaz Sharif has announced a major government restructuring, including the abolition of five key ministries and departments. This move is part of an initiative to streamline government operations and improve efficiency. The Institutional Reforms Cell, established by the prime minister, is spearheading this “rightsizing” process.
The five ministries set for dissolution are Information Technology, Kashmir Affairs, Safeguard, Industries and Production, and Health Services. Recommendations have been sought from these federal ministries within a week. Additionally, PM Shahbaz has directed the formation of a committee, including Finance Minister Muhammad Aurangzeb and Member of the National Assembly Bilal Azhar Kiani, to clarify the roles of provincial ministries.
The federal cabinet has also approved the dissolution of the Ministry of Planning, Development, and Special Initiatives. The entire plan concerning this ministry has been sanctioned, reflecting a significant shift in government priorities.
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In related actions, the prime minister has issued directives for immediate relief on electricity bills and expedited work on solar tube wells. The cabinet has approved running advertisements for medicines across TV, radio, and print media to improve public awareness.
Earlier in the fiscal year 2024-25, the federal government reduced the Public Sector Development Programme (PSDP) by Rs50 billion. This reduction was reported to the National Assembly Standing Committee on Planning Ministry on June 9. During the meeting, Planning Secretary Awais Manzur Sumra briefed the committee, chaired by Saeed Abdul Qadir Gilani, on the revised PSDP and ongoing development projects.
Planning Minister Ahsan Iqbal, present at the meeting, described the country’s economic situation as dire, citing heavy reliance on borrowing for salaries, pensions, and subsidies. He criticized the lack of policy continuity due to political instability, saying, “We have wasted 75 years going in circles.” Iqbal emphasized the need for better revenue and expense management, improved efficiency, and a focus on export-led growth. He warned that without demonstrated efficiency in the next 25 years, Pakistan might lose its rationale as a separate nation. Despite current exports valued at $30 billion, the country faces a $75 billion debt repayment obligation over the next three years.
