ISLAMABAD: The federal government of Pakistan has started work on the budget estimates for the upcoming fiscal year, which has issued important directives regarding non-essential posts and creation of new posts.

As part of these efforts, all federal ministries, divisions and departments in Pakistan have been directed to identify and eliminate redundant posts, while creating a strict ban on creation of new posts.

In a circular issued by the Ministry of Finance, all government institutions of Pakistan have been directed to submit detailed information about their current workforce by February 6. The circular specifically prohibits the creation of any new posts without prior approval from the Finance Ministry.

Additionally, the Government of Pakistan is conducting a comprehensive audit of vacancies that have been lying vacant for more than three years. These positions are to be eliminated as part of the government’s efforts to streamline its operations and reduce its wage bill.

Finance Minister Muhammad Aurangzeb has earlier said that the government has already eliminated 150,000 posts in federal ministries and departments. He emphasized the government’s commitment to reduce public expenditure and promote sustainable economic growth.

The minister also highlighted the ongoing efforts to reform the tax system and encourage greater participation of the private sector in the economy.

Read more: Notification of Government Servants Allowance Review Committee

An eight-member special committee has been notified to review the recommendations regarding allowances of government employees in December 2024.

According to the details, the notification was issued after the approval of the Prime Minister.

The committee was tasked with finalizing recommendations on new allowances for employees and would also be responsible for reviewing existing allowances.

The notification issued states that the committee will be headed by Federal Finance Minister Muhammad Aurangzeb.

Apart from this, Federal Minister for Economic Affairs Ahad Khan Cheema will also be a member of the committee.

Minister of State for Finance and Revenue Ali Pervez Malik and Secretary Finance will also be included in the committee.

Apart from this, the Secretary of the Establishment Division and Defense will be part of the committee along with the Home Division.