Governments in Pakistan are known for their extravagant, free-wheeling ways and squandering taxpayers’ money on high wire perks and privileges and meaningless, unproductive projects. Following a recent tax heavy budget and countrywide hue and cry that instead of burdening the poor people the government should cut its own unnecessary expenses, the authorities concerned are devising ways and means to reduce current expenditure. To this end, various committees have been formed to make appropriate recommendations.

As part of the ongoing exercise to streamline the state machinery and reduce administrative expenditures, the government has decided to abolish 28 departments in five ministries. The decision was taken at a meeting last week presided over by Prime Minister Shehbaz Sharif in light of the recommendations of a committee set up for the purpose. The meeting was briefed on reforms in five ministries — Kashmir Affairs and Gilgit-Baltistan, States and Frontier Regions, Information Technology and Telecommunication, Industries and Production and National Health Services.

The meeting proposed merging the Ministry of Kashmir Affairs and Gilgit-Baltistan with the States and Frontier Regions. It was recommended that 28 organisations under these five ministries should either be completely shut down, privatised or transferred to the federating units. There is also a proposal to consolidate 12 institutions within these five ministries.

The reforms committee has suggested shedding around 150,000 vacant positions and proposed outsourcing non-core functions such as cleaning and janitorial services, leading to the gradual elimination of various posts in grades 1 to 16. The committee has also recommended a complete ban on recruitment on contingency posts and supervision of the finance ministry over cash balances of the ministries.

It is by now clear that various regulatory councils of the subjects devolved under the 18th Amendment would be transferred from the Centre to the provinces. This means that the staff and assets, including buildings of regulatory councils like the Pakistan Medical and Dental Council, the Federal Pharmacy Council and the Higher Education Commission, would be transferred to the provinces. Some provinces already have similar organisations working there. As such federal financing to them would come to an end with effect from the next fiscal year.

The provincial governments would not only finance these regulators but also organisations, attached departments, and universities and professional colleges within their jurisdiction. The federal universities and hospitals would then be run by corporate boards in the private sector on a Public-Private Partnership model. Further, there would be a complete ban on the appointment of staff to federal universities and hospitals except for academic staff that would be hired on a lump sum remuneration package.

It has also been proposed that there should be a freeze on recruitment of in grade 1-16 employees, i.e. support staff, across the federal government and gradually such posts would be abolished at the time of their vacancy. The officer cadre would be trained to use digital tools instead of relying on the support staff. Such a ban should also be operationalized at the provincial level.

As transport facilities are grossly misused by officers and lower staff in the federal ministries and divisions, they are to be abolished completely. It has been found that senior bureaucrats are not only drawing generous transport allowances every month but also using official transport. The best way to go about this task will be to create a pool of vehicles for all ministries and departments from where cars can be commandeered as and when officially needed.

According to another report, the government may soon abolish regulatory bodies of the devolved subjects, particularly health and education, phase out non-executive staff at the Centre and merge aviation and maritime divisions with the defence ministry as part of an upcoming restructuring and austerity drive. At the same time, the state enterprises which have been running in loss for years and are a burden on the national exchequer will be either privatized or closed down.

A number of committees have been working over the past months to come up with new ideas for austerity measures. Many of these measures are expected to become part of the Extended Fund Facility (EFF) of the IMF and associated public sector restructuring programme of the World Bank. All austerity related proposals will be submitted to the federal cabinet for approval and a comprehensive plan will be prepared for their due implementation. All said, the taste of the pudding is in the eating. No doubt, the process of governance restructuring has been set in motion but it remains to be seen if the proposed reforms will produce the desired results. A note of caution here is important because similar exercises in the past produced zero results.