Pakistan government approves second phase of rightsizing for institutions

ISLAMABAD: The Pakistan government has approved the second phase of rightsizing for various public institutions, according to sources. The decision was made during a meeting of the federal cabinet, chaired by Prime Minister Shehbaz Sharif, on Friday.

As part of the new measures, the cabinet has decided to limit the duration of service provision by any institution to a maximum of three years. In addition, several amendments regarding the upgrading and merger of institutions have been approved, signalling a broader effort to streamline the country’s public sector.

A key component of the new policy involves third-party audits for various government institutions. The cabinet has agreed to hire reputable consultants for the audits, with the services being procured through the Public-Private Partnership Authority. The rightsizing committee will collaborate with these third-party consultants to finalise the Terms of Reference (TORs) for the audits.

In line with the rightsizing initiative, the cabinet has also decided to review the future of the Pakistan Industrial Technical Assistance Centre (PITAC) after one year. PITAC has been tasked with taking steps toward achieving self-sufficiency in its operations.

The subcommittee for rightsizing will oversee the implementation of these measures, ensuring that the process aligns with the government’s broader goal of improving efficiency within public institutions.

This move follows earlier discussions in July when Finance Minister Muhammad Aurangzeb emphasised the importance of rightsizing within key ministries, including Kashmir and Gilgit-Baltistan, SAFRON, Industries and Production, IT and Telecom, and Health. These ministries were shortlisted for the initiative, with the final decision on reforms expected to be made by Prime Minister Sharif.