Govt plans to save Rs36 billion by axing thousands of public jobs

The Cabinet Division has revealed plans to slash government expenditures by reducing public posts. According to credible reports, this decision could result in yearly savings of up to Rs 36 billion.

Of the Rs36 billion, approximately Rs7.2 billion will be saved by eliminating the positions of low-ranking grade-1 public servants such as sweepers, peons and gardeners. Authorities revealed the pay scale-wise details of approximately 40,000 positions to the Senate Standing Committee on Finance, which was chaired by Senator Saleem Mandiviwalla. 

Reports suggest that 29 percent of post eliminations were grade-1 - a post with an average salary of approximately 43,000 rupees per month. In contrast, only two positions were binned from the highest pay scale-22, which reportedly led to savings of just 0.05 percent.

This revelation led to the total annual savings value of Rs 36.3 billion coming to light, which could spell good news for the national exchequer. The savings could allow lawmakers to consolidate the cash-strapped economy’s fiscal position. Reports indicate that these posts are either abolished or have been deemed ‘dying’ positions, which means that this decision will not result in major layoffs in the public sector.

According to reports, these posts were mostly vacant already, and public servants still employed in these positions will be temporarily protected from the threat of being laid off. Under the proposed plan, the serving period of daily wagers will not be extended, and no newly inducted public servants will be able to occupy these posts anymore. 

While many consider downsizing to be beneficial for the public sector, the Cabinet Secretary has conceded that the plan's monetary impact will not be significant. Reports suggest that authorities are moving under the directives of Prime Minister Shehbaz Sharif, who intends to boost efficiency in government departments.

As per the cabinet secretary, reforms are already underway to support Shehbaz Sharif’s rightsizing plan. Directives to abolish the aforementioned posts had come from Islamabad in August 2024 to reduce the staggering number of public servants that were bloating up the bureaucracy.

Reports claim that previous governments have hired vast numbers of employees to curry political support from the general public. However, Shehbaz Sharif’s initiatives have been met by a barrage of criticism, some from his own political allies.

For instance, a senator from PPP (PMLN’s coalition partner) outlined how Shehbaz Sharif “talks about cutting costs” while simultaneously doubling the size of his cabinet.