Govt to dissolve six ministries Finance minister says 150,000 vacant posts to be abolished

Staff Report ISLAMABAD: The government has officially announced dissolution of six ministries, along with the elimination of over 150,000 vacant positions. Finance Minister Muhammad Aurangzeb held a press conference in Islamabad on Sunday to discuss these changes and their implications for Pakistan’s economy. He said that tax filers for the current fiscal year had nearly doubled as compared to last year, stating that around 723,000 new filers have registered themselves. “I think it is important that we, as a government, are walking the talk,” he said during a press conference held in Islamabad along with the Federal Board of Revenue (FBR) chairman. “This also shows our resolve as we go forward.” The finance minister said that the FBR chairman had presented a report to the prime minister on non-filers and underfilers. On this, he stated that the estimated tax evasion of individuals who underfile amounted to Rs1.3 trillion. “I think I’ve already talked about that we have to declare war on cash in this country,” he said. “When we talk about [going] in G20, we will only go in the G20 if all this goes in documented economy.” As for non-filers, the finance minister emphasised that “they will not be able to, going forward, buy vehicles, properties, mutual funds, and [open] current bank accounts — they will have difficulties in cash withdrawals and deposits”. For under filers, he stressed the government will reduce human intervention by creating a digital interface. Through digital algorithm, he said, the government will gauge the difference between what people have declared and the actual value of their assets. “Look, this data was always there with us,” he said. “On me, there was always a lifestyle [data] on how many cars [and] houses I have and how many foreign trips I go on in a year.” Regarding inflation and its downward trajectory, he said that it was down to single digits and was going to “subside more”, adding that happened on the back of the successful completion of the stand-by agreement with the International Monetary Fund (IMF). During Sunday’s presser, the finance minister said the government has decided to abolish 150,000 vacant posts. He said after the federal cabinet’s approval, the rightsizing committee had decided to scrap 60% of the vacant seats, which would help reduce the expenditures. He reiterated that claim, stating that the need to bring macroeconomic stability to be critical if this if “we are going to have this as a last programme”. “Because this isn’t a theory anymore, we are seeing the results of this macroeconomic stability,” he said, adding that reforms in the energy and privatisation side were taking place. On rightsizing, which the finance minister heads, he highlighted that six ministries were currently being ratified with the aim to reduce federal expenditures. “And they have been ratified by the cabinet and the prime minister,” he added, “Out of six there is one ministry [Capital Authority] that is being abolished”.