Govt to save Rs36 billion by abolishing 40,000 posts

In a major austerity push, the federal government abolished nearly 40,000 posts across various departments, aiming to save Rs36.3 billion annually, with a fifth of the savings coming from slashing the lowest-grade jobs, including those of sweepers, gardeners, and peons.

The revelation was made during a meeting of the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla.

Officials from the Cabinet Division informed the committee that 39,896 posts had been abolished or declared "dying cadre," clarifying that most of these positions were already vacant, so the move would not affect currently serving employees.

According to Express Tribune, this decision follows directives from Prime Minister Shehbaz Sharif, who has emphasised improving efficiency and focusing state resources on critical sectors to support economic recovery.

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According to the Cabinet Division, 11,558 of the abolished positions belong to Grade-1 employees, the lowest pay scale, who earn an average salary of Rs42,888 per month.

These cuts alone are projected to save Rs7 billion annually, constituting 19% of the total savings.

In stark contrast, only two posts in Grade-22 the highest pay scale with an average salary of Rs769,319 were eliminated, saving just Rs20.8 million or 0.05% of total savings.

Similarly, two Grade-21 posts were removed, saving Rs18 million.

Further, the government abolished 34,000 Grade-2 positions. the second-lowest pay scale, expected to save Rs2 billion.

In total, the elimination of 38,692 posts from Grade-1 to Grade-16 accounts for 86% of the total projected savings, amounting to Rs31 billion.

Despite recent cabinet appointments, the Cabinet Secretary maintained that the additions would have a negligible impact on overall expenditures.