ISLAMABAD – Over the much sensitive issue of Rs 1.8 trillion losses tonational exchequer, PTI government to go for government departmentdownsizing on IMF pressure.
Advisor to the Prime Minister on institutional reforms, Dr. Ishrat Hussainhas disclosed about the downsizing of the government departments.
He said that federal cabinet has given approval for winding up eightdepartments after which the number of government departments andorganisation will come down to 342.
The disclosure has come in the backdrop of the panic creating statement ofFederal Minister for Science and Technology of likely disbanding 400departments, which he later retracted.
The federal government is under extreme pressure from the InternationalMonetary Fund (IMF) to privitise huge losses incurring 50 plus publicsector corporations which devour Rs.400 billion annually and the cumulativelosses have reached to Rs.1.8 trillion.
Moreover, the international lending agency has also asked for rightsizingof some government departments.
The government has to go for a tradeoff between the budget deficit andunemployment that may occur if it implements its programmes ofprivitisation of public sector entities and downsizing of certaingovernment departments which has become one of the major economystabilisation measures.
The issue of mass unemployment is already there and every year two millionyoung people enter the job market.