Govt to resist boom-bust cycle for sustainable growth, says PM’s aide

KARACHI: Salman Ahmad, a member of the Economic Advisory Council, has stated that the incumbent government led by Prime Minister Shehbaz Sharif has decided to resist the boom-and-bust cycle to ensure sustainable economic growth.

Speaking on Geo News programme ‘Capital Talk’, he noted that the government was actively undertaking a comprehensive rightsizing exercise aimed at eliminating redundancy, duplication, and inefficiency across federal ministries and departments to reduce the burden on taxpayers and support economic reforms.

He explained that recommendations are being compiled for necessary action wherever public funds are being spent without delivering benefits, especially in ministries devolved to provinces after the 18th Amendment or departments with outdated, redundant mandates.

Out of 39 federal ministries comprising around 450 departments, the government is currently reviewing 32 ministries with nearly 350 departments. “A line-by-line review is underway and recommendations are being sent to the federal cabinet for approval,” he added.

Clarifying that no ministries are being shut down yet, Ahmed said, “We are not closing ministries for now, but we are analysing their functions and sending recommendations — this could involve merging departments, shutting them down, transferring them, or even moving them off the books.”

When asked whether employees would be laid off, he stressed that while rightsizing may lead to tough decisions, it is necessary. “The people of Pakistan are already bearing a heavy tax burden. It is our responsibility to reduce this load through rightsizing, especially in institutions that are unproductive or where no work is being done,” he said.

He also pointed out a broader economic plan — Sustainable Economic Growth, saying: “The journey to sustainable economic growth begins by shedding the perception of default, undertaking structural reforms, ensuring economic stability, attracting investment — and only then can we reach the stage of true, sustainable economic growth.”

Furthermore, he said that when the country travels on the path toward economic stability, political pressure emerges over “lack” of visible economic growth. This pressure, he warned, threatens to derail the reform agenda and push Pakistan back into a boom-bust cycle.

“It is the decision of Prime Minister Shehbaz Sharif and the current government to resist this cycle and instead pursue long-term structural reforms,” Ahmed stated.

Ahmad further revealed that the rightsizing process has been ongoing for the past year. Recommendations concerning 10 federal ministries have already been submitted to the cabinet, with further reviews continuing steadily. “Every four to five weeks, we forward recommendations for four to five ministries,” he added.

Responding to questions about the nature of these recommendations, Ahmad clarified that the government is not planning to shut down entire ministries. However, depending on their relevance and performance, individual departments within those ministries may be closed, merged, downsized or transferred.