Pakistan govt to shut down 4 departments as part of rightsizing plan

Pakistan Prime Minister Shehbaz Sharif has ordered shutting down four departments — Utility Stores Corporation, National Information Technology Board, National Fertilization Corporation and National Fertilizer Marketing — as part of the government's rightsizing plan.

According to details of a meeting chaired by the premier on August 16 shared with Nukta, PM Shehbaz gave 23 directives regarding shutting down, privatizing or retaining departments to minimize "unnecessary expenditure".

The prime minister directed the Establishment Division and the Law and Justice Division to constitute a committee that would hear the grievances of employees affected by the rightsizing measures.

The names of committee members, which would include former judges and its terms of reference would be finalized within two weeks and it would have quasi-judicial powers, according to the minutes of the meeting.

In addition, a committee on civil service reforms would also be constituted that would work alongside the rightsizing committee.

IT and telecom sectors

The Ministry of Information Technology and Telecommunication (IT&T) was asked to finalize the draft bill on the establishment of the Pakistan Digital Authority within one week in consultation with relevant stakeholders.

The government also decided that attached departments of Universal Service Fund shall be retained with other avenues for utilizations. However, attached departments of the ministry and the NITB would be wound up and agencies would be responsible for procuring IT equipment themselves.

Besides this, a performance review of the Pakistan Software Export Board shall be given to the prime minister in three months.

A committee shall also be constituted to review and formulate ICT governance structure and study international models to prepare a transition plan for devolved subjects.

Health sector

Meanwhile, the Drug Regulatory Authority of Pakistan's (DRAP) pricing functions shall be separated and the health minister shall give a presentation on the matter.

A transition plan shall be chalked out to devolve the Pakistan Institute of Medical Sciences, Federal Government Services Hospital, National Institute of Rehabilitation Medicine, Federal General Hospital, and the Directorate of Malaria Control and Primary Health Care to the relevant organizations within one year.

In addition, the coordinator to the prime minister on health and services shall further review the entities operating under administrative control to make the structure more lean and efficient within three weeks.

AJK

The Azad Jammu and Kashmir and Gilgit-Baltistan Division was also tasked to work out modalities for the utilization or disposal of Jammu & Kashmir properties in consultation with relevant stakeholders.

The sale proceeds, if any, shall be utilized for the welfare of the Kashmiri people, in accordance with the PM's directives.

Meanwhile, the Directorate of Health Services, AJK shall be transferred with its existing role and function to the AJK government, keeping in view donor-funding considerations.

Privatization

Meanwhile, the privatization of Pakistan Engineering Company, Republic Motors Limited, Sindh Engineering Private Ltd and State Engineering Corporation shall be considered in the first phase.

PECO shall be privatized on an ad-hoc basis. In this regard, a presentation shall be made by the Privatization Division.

The prime minister also tasked the Industries and Production Division to give a briefing on the performance of the Engineering Development Board.

The Ministry of Industries and Production shall wound up National Fertilization Corporation and National Fertilizer Marketing within a month.

The USC shall also be wound up, and alternative arrangements shall be explored, which may include cash transfer to the recipients.

In the second phase of the rightsizing process, five departments would be considered. These are the Board of Investment, Ministry of Commerce, Ministry of National Food Security & Research, Ministry of Housing and Works and Ministry of Science and Technology.

The premier directed all divisions to submit an implementation plan for all decisions within two weeks.