Rs 1.8 trillion losses: PTI government to go for government department downsizing on IMF pressure
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ISLAMABAD - Over the much sensitive issue of Rs 1.8 trillion losses to national exchequer, PTI government to go for government department downsizing on IMF pressure.
Advisor to the Prime Minister on institutional reforms, Dr. Ishrat Hussain has disclosed about the downsizing of the government departments.
He said that federal cabinet has given approval for winding up eight departments after which the number of government departments and organisation will come down to 342.
The disclosure has come in the backdrop of the panic creating statement of Federal Minister for Science and Technology of likely disbanding 400 departments, which he later retracted.
The federal government is under extreme pressure from the International Monetary Fund (IMF) to privitise huge losses incurring 50 plus public sector corporations which devour Rs.400 billion annually and the cumulative losses have reached to Rs.1.8 trillion.
Moreover, the international lending agency has also asked for rightsizing of some government departments.
The government has to go for a tradeoff between the budget deficit and unemployment that may occur if it implements its programmes of privitisation of public sector entities and downsizing of certain government departments which has become one of the major economy stabilisation measures.
The issue of mass unemployment is already there and every year two million young people enter the job market.
