The federal government has decided to eliminate 30,968 government positions across various departments as part of its comprehensive rightsizing initiative, the Cabinet Division Secretary informed the Senate Standing Committee on Finance and Revenue on Wednesday.
In addition to these immediate cuts, 7,724 positions have been designated as “dying posts,” which will be phased out over time. The majority of the eliminations will affect lower-grade positions, with 7,305 Scale-1 posts to be abolished, while only two positions at Grade 21-22, 36 posts at Grade-20, and 99 posts at Grade-19 will be eliminated.
During the committee briefing, the Cabinet Secretary explained that Prime Minister Shehbaz Sharif had directed a reduction in the federal government’s size to improve efficiency and prioritize essential functions.
“The primary goal is for the federal government to focus on its essential functions, while transferring additional responsibilities to the provinces,” the secretary stated. He added that the prime minister had also ordered a review of government-run commercial activities to assess their necessity and effectiveness.
The Cabinet Secretary clarified that regulatory authorities would not be affected by the rightsizing process, though these bodies are being asked to submit data on consultants, staff strength, and salary structures. The impact on autonomous institutions is also under examination.
Senator Sherry Rehman expressed concern about the government’s approach to reforms, pointing out an apparent contradiction. “On the one hand, the government talks about cutting costs, yet on the other, it has doubled the size of the federal cabinet,” she stated.
Rehman also raised concerns about the potential hardship for government employees, questioning the impact on those forced into early retirement.
In response, the Cabinet Secretary acknowledged the critical nature of the rightsizing decision but emphasized its benefits. “This step alone will result in substantial savings for the state,” he said, noting that the elimination of redundant posts had already led to considerable cost reductions.
Regarding new ministerial appointments, the secretary stated, “The induction of new ministers is expected to enhance the overall performance of ministries, in line with the broader agenda of institutional reform.”
The committee, chaired by Senator Saleem Mandviwalla, unanimously decided to review the rightsizing matter thoroughly on a department-by-department basis in its next meeting.
The session also included discussion of the Private Member’s Bill titled “The Income Tax (Amendment) Bill, 2025,” introduced by Senator Zeeshan Khanzada. The committee decided to summon the Federal Board of Revenue (FBR) chairman for its next meeting before finalizing the bill.
Senators Mohsin Aziz, Sherry Rehman, Faisal Vawda, Zeeshan Khanzada, and Anusha Rahman attended the meeting, along with secretaries from the Cabinet Division and the Ministry of Finance and Revenue, as well as senior officials from relevant departments.
