Former McKinsey Pakistan MD Salman Ahmad.— The Org/File
Salman Ahmad, a member of the Economic Advisory Council, has said that the government is implementing a strategic rightsizing initiative aimed at cutting redundant spending, and laying the groundwork for long-term economic stability.
Speaking on Geo News programme ‘Capital Talk’, he said the move, endorsed by Prime Minister Shehbaz Sharif, is part of broader structural reforms to break Pakistan’s boom-bust cycle and reduce the tax burden on citizens.
He explained that wherever public funds are being spent without delivering benefits — especially in ministries devolved to provinces after the 18th Amendment or departments with outdated, redundant mandates — recommendations are being compiled for necessary action.
Out of 39 federal ministries comprising around 450 departments, the government is currently reviewing 32 ministries with nearly 350 departments. “A line-by-line review is underway and recommendations are being sent to the federal cabinet for approval,” he added.
Clarifying that no ministries are being shut down yet, Ahmed said, “We are not closing ministries for now, but we are analysing their functions and sending recommendations — this could involve merging departments, shutting them down, transferring them, or even moving them off the books.”
When asked whether employees would be laid off, he stressed that while rightsising may lead to tough decisions, it is necessary. “The people of Pakistan are already bearing a heavy tax burden. It is our responsibility to reduce this load through rightsizing, especially in institutions that are unproductive or where no work is being done,” he said.
He also pointed out a broader economic plan — Sustainable Economic Growth, saying: “The journey to sustainable economic growth begins by shedding the perception of default, undertaking structural reforms, ensuring economic stability, attracting investment — and only then can we reach the stage of true, sustainable economic growth.”
Furthermore, he said when the country travels on the path toward economic stability, political pressure emerges over “lack” of visible economic growth. This pressure, he warned, threatens to derail the reform agenda and push Pakistan back into a boom-bust cycle.
“It is the decision of Prime Minister Shehbaz Sharif and the current government to resist this cycle and instead pursue long-term structural reforms,” Ahmed stated.
Ahmed further revealed that the rightsizing process has been ongoing for the past year. Recommendations concerning 10 federal ministries have already been submitted to the cabinet, with further reviews continuing steadily. “Every four to five weeks, we forward recommendations for four to five ministries,” he added.
Responding to questions about the nature of these recommendations, Ahmed clarified that the government is not planning to shut down entire ministries. However, individual departments within those ministries may be closed, merged, downsized, or transferred, depending on their relevance and performance.
