Mergers, downsizing in federal ministries on cards

Official says dysfunctional ministries to be abolished, some merged to create space for LNG power projects in PSDP

In order to create a fiscal space of Rs 250 billion for LNG-based power projects in the Public Sector Development Programme (PSDP) for the next fiscal year, the government has finalised a plan for massive downsizing in the federal ministries and their subordinate departments.

An official source said the Cabinet Committee on Restructuring (CCOR) has recommended abolition of 13 departments and merger of another eight.

“The Sharif government is in no mood to provide development funds to the ministries and has already informed them that only their current expenditure i.e. salary, building rent and utility bills would be met.”

The major departments to be abolished are under the dysfunctional Ministry of National Food Security and Research that include the Agricultural Policy Institute (API), Pakistan Oilseed Development Board (PODB), Federal Water Management Cell (FWMC), Fisheries Development Board and Livestock and Dairy Development Board.

These departments create hurdles for the business tycoons’ demand for laissez faire. The API intervenes in the sugar sector by giving support price for sugarcane, which is opposed by the sugar millers, PODB is an effective check against ghee and edible oil cartel, while FWMC keeps check over the irrigation authorities.

If the government decides to abolish all these departments, there is no need for a ministry either to spend on the upkeep of a minister, state minister, parliamentary secretary, DMG secretary, two additional secretaries, four joint secretaries and many deputy secretaries and section officers, an official source said.

The CCOR has recommended abolition of the State Engineering Corporation and Pakistan Automobile Corporation under the Ministry of Industries. Both these institutions have remained dysfunctional due to the bureaucracy’s attitude.

The committee has recommended elimination of the Technical Penal of Teachers Education, Directorate of Workers Education and National Trust for Disabled, falling under the administrative control of Capital Administration and Development Division (CAAD), which itself is likely to be merged into Ministry of Interior, the source said.

The other departments include National Research Institute for Fertility Care under Ministry of Health Services and Directorate of Health Services AJK under Ministry of Kashmir Affairs.

Moreover, the CCOR has recommended merger of Benazir Income Support Program and Pakistan Baitul Maal, both fall under the Prime Minister’s Office. The National Language Promotion Department, Urdu Dictionary Board and Urdu Science Board will be amalgamated under the Ministry of Information and Broadcasting.

Furthermore, the Quaid-e-Azam Academy Karachi, Quaid-e-Azam Paper Project, Islamabad and Quaid-e-Azam Mazar Management Board, Karachi will be merged under the Ministry of Information and Broadcasting.