Prime Minister Shehbaz Announces Major Government Overhaul: Abolishes Key Ministries and Focuses on Economic Efficiency

In a significant move towards restructuring the federal government, Prime Minister Shehbaz has announced the abolition of five key ministries. This decision is part of a broader initiative aimed at streamlining government functions and improving administrative efficiency. According to sources, recommendations have been sought from five federal ministries within a week, which include Information Technology, Kashmir Affairs, Ministry of Safeguard, Ministry of Industries and Production, and Ministry of Health Services.

Formation of a Special Committee

To facilitate this transition, PM Shehbaz has directed the formation of a committee comprising Finance Minister Muhammad Aurangzeb and Member of National Assembly Bilal Azhar Kiani. This committee is tasked with explaining the role of provincial ministries in light of the proposed changes. The goal is to ensure that provincial ministries can take on functions previously managed by the now-abolished federal ministries, thereby enhancing the efficiency of government operations at all levels.

Abolition of the Ministry of Planning, Development, and Special Initiatives

In a move that underscores the depth of this restructuring, the federal cabinet has formally approved the abolition of the Ministry of Planning, Development, and Special Initiatives. This decision has been made after careful consideration, and approval for the entire plan related to this ministry has been granted. The abolition is part of a broader strategy to reduce redundancies and ensure that government resources are utilized more effectively.

Immediate Relief Measures

In addition to the structural changes, Prime Minister Shehbaz has instructed immediate relief measures for the public. He has directed authorities to provide relief on electricity bills and expedite work on solar tube wells. These measures are aimed at alleviating the burden on citizens and promoting sustainable energy solutions. The cabinet meeting also approved the running of advertisements for medicines on TV, radio, and print media, ensuring that the public is well-informed about available health resources.

Reduction in the Public Sector Development Programme PSDP

This overhaul comes on the heels of a significant reduction in the Public Sector Development Programme PSDP. Within 10 days of the start of the new fiscal year 2024-25, the federal government reduced the PSDP by Rs50 billion. This decision was communicated to the National Assembly Standing Committee on Planning Ministry on June 9. The committee, led by Chairman Saeed Abdul Qadir Gilani, sought details of the revised PSDP and the ongoing development projects.

During the meeting, Planning Secretary Awais Manzur Sumra provided a briefing on the ministrys workings. Planning Minister Ahsan Iqbal also attended the meeting and gave an overview of the prevailing economic conditions in the country. He painted a grim picture, emphasizing that the country was being run on borrowing, including for salaries, pensions, and subsidies. Iqbal highlighted the inefficiencies and lack of continuity in policies due to political instability over the past 75 years.

Economic Challenges and the Need for Efficiency

Minister Iqbal underscored the urgent need for managing revenues and expenses more effectively. He stressed the importance of improving efficiency and focusing on export-led growth. "We have to show efficiency in the next quarter of a century," he said, "or we will lose justification for the creation of Pakistan as a separate country."

Iqbal noted that Pakistan’s exports currently stand at 30 billion, while the country faces the daunting task of paying off 75 billion in debt over the next three years. This situation calls for immediate and effective measures to boost economic productivity and ensure sustainable growth.

Focus on Export-Led Growth

The focus on export-led growth is a critical component of the governments new strategy. By boosting exports, the government aims to generate the necessary foreign exchange to meet its debt obligations and support economic development. This approach requires significant improvements in various sectors, including manufacturing, technology, and agriculture, to enhance the quality and competitiveness of Pakistani products in the global market.

Enhancing Government Efficiency

The abolition of the five key ministries and the Ministry of Planning, Development, and Special Initiatives is expected to reduce bureaucratic red tape and improve the efficiency of government operations. By delegating responsibilities to provincial ministries, the government aims to ensure that resources are managed more effectively and that public services are delivered more efficiently.

Conclusion

Prime Minister Shehbazs decision to abolish five key ministries marks a significant step towards improving the efficiency and effectiveness of the federal government. The formation of a special committee to oversee the transition, coupled with immediate relief measures and a focus on export-led growth, reflects a comprehensive approach to addressing the countrys economic challenges. The reduction in the PSDP and the emphasis on managing revenues and expenses underscore the urgency of the situation. By enhancing government efficiency and focusing on sustainable growth, the government aims to steer Pakistan towards a more stable and prosperous future.

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