The federal government has announced a series of austerity measures, including a ban on new recruitments, government-funded overseas medical treatments, and the purchase of all types of new vehicles, as part of efforts to reduce public expenditures.
According to a notification issued by the finance ministry, positions that have remained vacant for three years will be abolished, and no new hiring will be allowed, except for temporary positions that have been in place for over a year. Additionally, a ban has been placed on government-funded foreign trips and vehicle purchases, with exceptions made only for ambulances, medical aid vehicles, and buses for educational institutions.
These steps are being taken following the federal cabinet’s decision to reduce government expenses. Earlier, the Cabinet Committee on Institutional Reforms proposed cutting 150,000 vacant positions, ending contingency recruitment, and outsourcing non-core services like janitorial work, which would eventually phase out many positions in grades 1 to 16. The committee also recommended closing 28 institutions and merging 12 others within various ministries.
In June, Prime Minister Shehbaz Sharif ordered the dissolution of the Pakistan Public Works Department (Pak PWD) due to long-standing inefficiencies and corruption. The government remains committed to cutting expenditures to stabilize the economy.