Govt to abolish all ‘non-strategic’ ministries, says federal minister

Published August 25, 2024
Federal Minister for Maritime Affairs Qaiser Ahmed Sheikh. — Dawn News TV
Federal Minister for Maritime Affairs Qaiser Ahmed Sheikh. — Dawn News TV

Federal Minister for Maritime Affairs, Qaiser Ahmed Sheikh, said on Saturday that the government planned to close or privatise state-owned enterprises (SOEs) and ministries classified as “non-strategic” as part of its austerity measures.

Speaking on Dawn News TV’s programme ‘Doosra Rukh with Nadir Guramani,’ the federal minister emphasised that this move will not only relieve the government of a significant burden but also ensure a focus on “good governance.”

Sheikh said that the government was looking at multiple SOEs and considering whether to privatise them or close them entirely.

“These institutions, for the most part, generate losses and perform poorly,” he said.

“They bring no benefit and people aren’t satisfied with their service.”

He added that the government was holding discussions related to all federal institutions, aiming to privatise most of them.

“There are few that serve a strategic purpose… we need to downsize to ensure better governance.”

Asked about which institutions and ministries would be shut down, Sheikh provided no names but emphasised that they would be either closed or merged with other ministries.

“We are either going to merge one ministry with the other, or we’ll reduce the amount of divisions within them.

“The federal government needs to focus on good governance, so it will only control those institutions that serve a strategic purpose.”

The minister stated that the measures intend to ensure lower expenditures, adding that the government had recently decided to stop offering jobs as well.

“We have banned [offering] jobs as a means to cut down on spending”. Sheikh said. “Our institutions run on tax revenue and so far we are generating losses.

“We aim to maintain a very lean government,” he said.

The minister further stated that in addition to banning new job hirings, serving government officials will be prohibited from purchasing new cars and will be required to cover their own utility bills.

“We looked at how we could further reduce spending and made these decisions,” he maintained.

“Nobody can buy a new car and our cabinet members have said that they will not take additional salary and will pay their own utility bills,” he said, adding that ministers were discouraged from travelling in business class on foreign trips.

“These are stringent measures necessary to maximise savings while reducing expenditures,” Sheikh reiterated.

On Friday, the Ministry for Industries and Production (MoIP) secretary said that the government was considering shutting down all utility stores in the country, as part of the “rightsizing of federal government ministries, and institutions working under them.”

The Utility Stores Corporation (USC), although being run inefficiently, provides lifelines to millions of low-income Pakistanis in the form of subsidised groceries. Reports suggesting their closure raised public concern.

However, on Saturday, Minister for Industries and Production Rana Tanveer Hussain dismissed the impression that the utility stores were being closed, insisting that the government was planning to “restructure” the organisation.

“The decision has been made to close the USC and the Public Works Department,” Tanveer had said.

“We are taking SOEs that are not strategic and intend to either privatise them or operate them under a public-private partnership.”

Opinion

Editorial

The challenge before banks
Updated 27 Feb, 2025

The challenge before banks

The way we do banking today will not exist in next 10 years, only those will survive who are capable of adopting new technologies.
Torkham tension
27 Feb, 2025

Torkham tension

CONTROVERSY over demarcation of the common frontier is one of the key obstacles standing in the way of better...
Weak link
27 Feb, 2025

Weak link

KARACHI — economic powerhouse, cultural melting pot, and bustling metropolis of over 20m souls. There is much that...
Forgotten inmates
Updated 26 Feb, 2025

Forgotten inmates

Diversion programmes are needed for minor offences and people with psychosocial disabilities should receive treatment rather than be jailed.
Controlling crypto
26 Feb, 2025

Controlling crypto

THOUGH Pakistan’s official position on cryptocurrencies has evolved considerably over the years, there still seems...
Deadly roads
26 Feb, 2025

Deadly roads

DRIVING in Karachi can be hazardous, with chaos on the roads, and very little by way of following rules and...