Here's why India's neighbor is eliminating 60% of open positions, resulting in 1,50,000 job cuts in Pakistan.

Pakistan will eliminate 150,000 employment and 60% of open positions in order to address its budgetary difficulties. In an effort to save costs and improve operational effectiveness, the government is merging ministries and giving hospitals more provincial authority.

Pakistan has made the decision to eliminate 60% of open positions for the second time in less than six months in an effort to cut costs and the size of the federal government in the face of a persistent financial crisis.

Additionally, Pakistan intends to hand over several hospitals to the provincial governments.

According to PTI, Finance Minister Muhammad Aurangzeb stated, "The federal government has decided to cut the number of affiliated agencies by half, abolishing 150,000 jobs."

80 departments have been streamlined into 40, Aurangzeb continued.

To increase performance and rationalize spending, the government has implemented extensive cost-cutting initiatives.

A team headed by Prime Minister Shehbaz Sharif started the project in the middle of 2024.

43 ministries and their subordinate agencies were to be examined by the committee. According to the minister, the federal government spends ₹900 billion a year on these departments.

Kashmir Affairs and Gilgit-Baltistan, States and Frontier Regions (SAFRON), IT and Telecom, Industries and Reproduction, National Health Services, and Capital Development Authority (CAD) were among the six ministries that the government had originally chosen for right-sizing, he claimed.

According to him, CAD is being eliminated and the Ministry of Kashmir Affairs, Gilgit-Baltistan, and SAFRON are being combined.

The minister stated that "this is not just about cutting costs; it's about improving efficiency" in reference to plans to hand over hospitals to provincial administrations.

According to Aurangzeb, Pakistan was at a hopeful economic juncture as a result of numerous government initiatives, and the government's emphasis on macroeconomic stability helped the key indicators to improve.

Questions were being raised about the size of the Pakistani government, which became a focal point following the dramatic increase in spending.

The present administration has been taking action to cut costs and size. Last year, it eliminated the conventional government employee pension plan and decreased the pension benefits for the current employees.