Pakistan to Abolish 150,000 Jobs, Close Ministries Under IMF Loan Deal

Pakistan has announced significant reforms to reduce administrative expenditures, including the abolition of 150,000 government jobs and the closure of six ministries. These changes are part of the country’s agreement with the International Monetary Fund (IMF) under a $7 billion loan deal aimed at stabilizing the economy.

IMF Loan Conditions and Government Reforms

On September 26, the IMF approved the first tranche of over $1 billion following Pakistan’s commitment to implementing tough economic reforms. These include cutting public sector expenditures, expanding the tax base, and taxing non-traditional sectors such as agriculture and real estate. Pakistan also pledged to limit subsidies and shift fiscal responsibilities to provincial authorities.

For more insights on government reforms, check out our economy section.

Finance Minister Details Job Cuts and Ministry Closures

Speaking at a press conference after his return from the U.S., Finance Minister Muhammad Aurangzeb confirmed that approximately 150,000 posts across various government ministries will be eliminated. Additionally, six ministries will be closed, and two others will be merged as part of the government’s cost-cutting efforts. Aurangzeb emphasized that these reforms are essential to achieving long-term economic stability and highlighted the government’s aim to formalize the economy.

For more updates on economic restructuring, visit this IMF report.