Civil Servants Act tweaked: layoffs likely, severance package on the cards

ISLAMABAD: Giving approval to “The Civil Servants (Amendment) Bill, 2025”, the Standing Committee of the National Assembly on Cabinet Secretariat has directed the Establishment Division to ensure that least number of employees be laid off consequent to the restructuring and rightsizing exercise being carried out by the government.

The committee approved the “The Civil Servants (Amendment) Bill, 2025” without any amendments. The committee ordered for adjusting maximum number of employees in other departments declared surplus or redundant. The committee also directed for working out severance package to the best interests of the civil servants probably going to be laid off.

The NA standing committee held its meeting with its Chairman Malik Ibrar Ahmad, MNA, in the chair here at the Parliament House on Thursday. The secretary stated that the government’s right-sizing committee is identifying financially burdensome departments for potential shutdown or merger. He clarified that the objective is not forced layoffs, but rather to offer voluntary golden handshake packages, particularly targeting employees in non-essential posts. He informed that many departments have excessive support staff — some officers working with six subordinates — which will now be limited to two. The secretary also revealed that over 115,000 vacancies already exist from grade 1 to 15, and 90pc of any displaced employees are expected to be reabsorbed in other government roles.

Committee members voiced deep concerns. MNA Aslam Ghuman demanded curbs on discretionary powers and criticised how junior staff like clerks on deputation become food inspectors on deputation, leading to corruption.

MNA Shahida Begum questioned the lack of resolution in cases like PTCL privatisation and demanded clarity on how many employees would be affected by the ongoing restructuring.

MNA Agha Rafiullah criticised the proposed closure of Utility Stores and Pakistan Steel Mills, stating the government’s role is to create jobs, not eliminate them. MNA Tahira Aurangzeb warned that mass layoffs, especially of lower-grade staff, could increase crime rates.

In response, the Cabinet Secretary stated that the government is working to scale down bureaucracy and that many public sector companies are operating at a loss. “Right-sizing is part of a larger reform to focus on essential functions only,” he said. He confirmed the merger of SAFRON and Gilgit-Baltistan divisions, with surplus staff being absorbed in other ministries. He also clarified that while the government cannot offer new jobs, it aims to promote employment via private sector facilitation.

When asked about the exact number of employees being offered golden handshakes, officials admitted that no final figures were available.

The committee discussed and approved “The National School of Public Policy (Amendment) Bill 2025” without amendments. The committee discussed and approved “The Asaan Karobar Bill 2025” without amendments. The committee appreciated the initiative of Board of Investment (BoI) for bringing all the laws and regulations in vogue at one place for ease of the business community.