ISLAMABAD: In a significant move towards austerity, the Federal Minister for Maritime Affairs, Qaiser Ahmed Sheikh, announced plans to privatize or shut down non-strategic state-owned enterprises (SOEs) and ministries.
This decision aims to trim the fat from government spending and improve governance.
Speaking at a private TV channel talk show,’ Sheikh explained that the initiative targets SOEs and ministries that are financially burdensome and underperforming.
He said the review would determine whether these entities should be privatized or completely phased out, emphasizing the need for a streamlined government focused on strategic functions.
He did not specify which institutions are slated for closure but mentioned that the government is considering merging some ministries and reducing the number of divisions within others to enhance operational efficiency.
The minister also highlighted additional austerity measures, including a hiring freeze across government jobs, restrictions on new vehicle purchases for officials, and requirements for government officials to pay their utility bills. These steps are part of a broader effort to reduce government expenditures significantly.
Additionally, Sheikh noted that cabinet members have agreed to forego salary increases and limit luxury travel to further demonstrate the government’s commitment to cost-cutting.
In a related statement, Minister for Industries and Production Rana Tanveer Hussain addressed concerns about the Utility Stores Corporation (USC), clarifying that while the USC will undergo restructuring, it will not be closed.
This statement came in response to public worries about the availability of subsidized groceries for low-income families.
