The federal government is considering significant reforms in the public sector, including a phased removal of Basic Pay Scales (BPS) for non-gazetted employees and a transition to contract-based hiring. These changes aim to streamline operations and reduce costs across federal bodies.

As part of the proposed reforms, federal medical facilities may be transformed into semi-commercial entities through public-private partnerships (PPP) to promote medical tourism, according to a report by Dawn. This model could potentially convert hospitals like the Pakistan Institute of Medical Sciences (PIMS) and Polyclinic into revenue-generating centers. Officials estimate that health facilities in Islamabad alone could generate between Rs. 80-100 billion over five years through PPP-led medical tourism initiatives.

In addition to these changes, the Ministry of Finance has already shifted to contributory pensions for new civil and military hires to alleviate the pension burden, which has surpassed Rs. 1 trillion in the current budget. The government projects that implementing contract-based hiring across federal agencies could result in annual savings of Rs. 35-40 billion.