Smaller Government – Journal – DAWN.COM

THE IMF bailout program has put pressure on the government to cut spending, particularly current spending, reduce its growing budget deficits and produce a primary surplus for debt reduction and sustainability. He has also faced scathing criticism from economic experts and political parties for massively increasing taxes on employees and tax-paying sectors of the economy in order to meet the fiscal target of program of the IMF for the current financial year, instead of curbing its unnecessary spending.

In June, the prime minister told the National Assembly that the government planned to cut spending within months, citing its decision to abolish the Public Works Department as part of a plan to resize the government and to reduce its expenses. In August, his cabinet approved the elimination of 150,000 jobs, the closure of six ministries and the merger of two others, as part of a series of reforms agreed with the IMF. Later, he asked all federal divisions and their subordinate ministries and offices to prepare lists of emergency temporary positions, outsource their non-essential services, such as plumbing and gardening, and provide details on surplus employees who could receive severance pay and be sent on. House. However, things are moving slowly. A report suggests that only 15-16 of the over 40 ministries and divisions have started the process more than two months after the cabinet took its decision in this regard. Others gave a lukewarm response. This is not surprising. In 1997, the federal government embarked on a similar plan, prepared by the Ministry of Planning, to resize the territory. Nothing happened. Instead, according to a senior economist, the total number of federal employees was 829,000 in 2011. That headcount remained largely stable until 2017, when the sudden influx of 137,000 new entrants brought that figure at 966,000. Imran Khan's administration had approved a major government restructuring plan, which included maintaining 325 entities out of a total of 441. It has not yet been implemented due to bureaucratic inertia. A plan to abandon state-owned companies to avoid future losses was also not implemented. It is difficult to downsize government without a responsive bureaucracy. And bureaucrats rarely act unless politicians want them to. If the bureaucracy does not understand the Prime Minister's message, it is because it was not transmitted with the force necessary to get it across.

Published in Dawn, November 11, 2024

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