ISLAMABAD: Prime Minister Shehbaz Sharif has officially approved a massive restructuring of the federal government, ordering the immediate abolition of 28 departments and the merger of several others. This sweeping move forms the backbone of the latest Shehbaz Sharif austerity plan, aimed at slashing non-development expenditures and stabilizing the country’s fragile economy.
Presiding over a high-level cabinet meeting in the capital, the Prime Minister directed authorities to wind up redundant wings within various ministries. The Prime Minister’s Office confirmed that these measures will save the national exchequer billions of rupees annually by eliminating “ghost” positions and overlapping administrative roles. Under this phase of the Shehbaz Sharif austerity plan, the government will also ban the procurement of luxury vehicles and expensive office equipment for all federal employees.
The Cabinet Division has already issued notifications to stop recruitment for vacant posts in the affected departments. To ensure transparency, the Prime Minister formed a high-powered committee to oversee the transition of essential staff to surplus pools while terminating the contracts of non-essential consultants.
The Shehbaz Sharif austerity plan also targets the energy sector, mandating strict office hours and solarization of government buildings to reduce utility bills. Addressing the cabinet, the Prime Minister emphasized that “extraordinary times demand extraordinary sacrifices from the state,” signaling that the elite-led expenditure model must end.
Insiders suggest that this downsizing aligns with the ongoing structural reforms suggested by international lenders. By reducing the size of the federal cabinet and its attached departments, the government expects to bridge the fiscal deficit and divert those funds toward social safety nets and public infrastructure.