Government Proposes Amendment to Civil Servants Act 1973 to Reduce Workforce and Pension Burden

Islamabad: In a move to streamline the federal bureaucracy and reduce the financial burden of pensions, the federal government has proposed amendments to the Civil Servants Act of 1973, according to Secretary Establishment.
Speaking on the proposed reforms, the Secretary Establishment stated that the government intends to shut down or merge several federal institutions following the devolution of powers under the 18th Constitutional Amendment. The amendments also include a proposal for mandatory asset declaration by civil servants.
The government is working on a downsizing strategy that includes offering a golden handshake to certain employees and outsourcing posts from Grade 1 to Grade 5. The aim is to reduce the size of the federal workforce without sending all employees home abruptly.
“Many institutions have become redundant in the current technological era. The need for large support staff has diminished. For instance, where one officer previously had six subordinates, now only two may be needed,” the Secretary noted.
He further explained that the federal government cannot continue to send surplus employees into the surplus pool, hence a separation package is being considered. The Right-Sizing Committee is actively working on identifying departments that can be closed or merged.
The outsourcing of lower-grade positions is expected to significantly reduce the government’s pension liabilities over time. The Secretary emphasized that this is not a blanket termination plan but a structured reform initiative to make the bureaucracy leaner and more efficient.