— Rightsizing Initiative: Federal govt set to reform key ministries, institutions

AHMAD AHMADANI

ISLAMABAD: The federal government is poised to implement significant changes affecting five key ministries, institutions, and corporations.

According to sources, on the orders of Prime Minister Shehbaz Sharif, the Cabinet Division has circulated a letter and proforma to the relevant ministries to gather essential information and suggestions by July 12, 2024. The objective is to explore ways to reduce the size and expenses of these ministries and determine which functions can be managed through public-private partnerships (PPP).

The Institutional Reforms Wing of the Cabinet Division has requested responses from the ministries by the specified deadline (July 12, 2024). The goal is to close ministries and institutions whose functions are more aligned with provincial affairs and to shift many government sector responsibilities to the private sector or PPP models.

Documents available with Profit disclosed that the Institutional Reforms Cell (IRC), established by the Prime Minister, has begun its work on rightsizing the government. The IRC has sought recommendations from five federal ministries: Information Technology, Kashmir Affairs, Ministry of SAFRON, Industries and Production, and Ministry of Health Services. The Prime Minister’s Office has also dispatched a letter containing eight questions to these ministries, requesting comprehensive responses.

Sources said that the targeted ministries have started working on their answers. They have been asked to clarify the roles of ministries that have been transferred to provincial authorities.

The Ministry of National Health Services, Regulation, and Coordination has distributed the Prime Minister’s Office (Institutional Reforms Cell) letter to all heads of departments and organizations under its purview. They have been instructed to provide the requested information by July 9, 2024, for onward submission to the Prime Minister’s Office.

The Institutional Reforms Cell, part of the Cabinet Division, has been tasked with conducting a thorough rightsizing exercise to ensure efficiency within the government.

The Prime Minister has established a Committee on Rightsizing of the Federal Government with specific terms of reference (ToRs). These ToRs include proposing a new architecture for federal functions that can be performed in private mode, determining functions that are purely provincial, and recommending a clear plan to safeguard assets and human resources during the transition.

The committee, chaired by the Minister for Finance & Revenue, held its third meeting on July 5, 2024, and decided to seek immediate input from the five ministries. The response is to be submitted in both hard and soft forms by July 12, 2024.

The letter sent to the ministries includes a detailed proforma asking for information on the current structure, financials, and justification for each function. Ministries are asked to provide recommendations on whether functions should be transferred to the provinces, shut down, retained, or modified. They are also asked to consider if functions can be performed via PPP or by the private sector with federal funding.

The committee’s primary focus is to streamline government operations, reduce expenses, and improve efficiency. The right-sizing initiative is seen as a critical step toward achieving these goals. Ministries and institutions that primarily deal with provincial affairs are expected to be closed or restructured to align with provincial responsibilities. This shift aims to reduce the federal government’s burden and encourage more private sector involvement.