ISLAMABAD: The federal government of Pakistan has initiated work on budget estimates for the upcoming fiscal year, with key directives issued regarding unnecessary positions and the creation of new vacancies.

As part of these efforts, a directive has been issued to all federal ministries, divisions, and departments in Pakistan to identify and eliminate redundant positions, while imposing a strict ban on the creation of new posts. In a circular issued by the Ministry of Finance, all government of Pakistan entities have been instructed to submit detailed information on their existing workforce by February 6th. The circular specifically prohibits the creation of any new positions without prior approval from the Ministry of Finance. Furthermore, the government of Pakistan is undertaking a comprehensive audit of vacant positions that have remained unfilled for more than three years. These positions are slated for elimination as part of the government’s efforts to streamline its operations and reduce its wage bill.

Finance Minister Muhammad Aurangzeb has previously stated that the government has already eliminated 150,000 positions across federal ministries and departments. He emphasized the government’s commitment to reducing public expenditure and promoting sustainable economic growth. The minister also highlighted ongoing efforts to reform the tax system and to encourage greater private sector participation in the economy. In December 2024, an eight-member special committee has been notified to review the recommendations concerning government employees’ allowances. According to the details, a notification was issued following the approval of the Prime Minister. The committee was tasked with finalising recommendations related to new allowances for employees and will also be responsible for evaluating the existing allowances. As stated in the issued notification, the committee will be chaired by the Federal Minister for Finance, Muhammad Aurangzeb. Additionally, the Federal Minister of Economic Affairs, Ahad Khan Cheema, will be a member of the committee. The committee will also include the State Minister for Financea and revenue, Ali Pervaiz Malik, and the Secretary of Finance. Furthermore, the Secretaries of the Establishment Division and Defense will also be part of the committee, along with the Secretary of the Interior Division.