PM Shehbaz Orders Shutdown of Dead Ministry Departments in Upcoming Budget

Prime Minister Shehbaz Sharif has directed all ministries to identify useless government departments for closure in the upcoming budget. He also instructed the Finance and Power ministries to finalize power subsidy allocations ahead of the budget presentation on June 2. The Prime Minister has formed six committees to resolve key pending issues. He gave a May 24 deadline to conclude all budget-related tasks. Finance Minister Muhammad Aurangzeb has been told to address unresolved matters by Saturday. Ministries have been ordered to propose the winding up of dysfunctional bodies. A previous cabinet rightsizing effort fell short of expectations. A federal committee is now reassessing all state-owned enterprises. The Cabinet Division earlier told the Senate Finance Committee that abolishing 40,000 posts would save Rs. 36.3 billion annually. Grade-1 eliminations alone account for Rs. 7 billion in savings. The Prime Minister has also directed the Finance Minister to submit the core themes of the budget speech and asked the media wing to shape a positive narrative. He further ordered the Planning and Finance Ministries to consult line ministries and include only fully fundable projects in the 2025–26 Public Sector Development Program (PSDP). The PM also sought clarity on the size of discretionary spending under the SDGs Achievement Program. The current year’s allocation was Rs. 50 billion, but actual spending is likely higher. The Finance and Power Ministries have yet to agree on power subsidy allocations. Rs. 1.04 trillion has been proposed for 2025–26, but the Power Division is demanding Rs. 180 billion more from the Petroleum Development Levy. The PM earlier increased the levy by Rs. 10/litre to reduce the electricity tariff by Rs. 1.71/unit. He has asked the ministries to finalize a revised proposal. The Petroleum Division has been directed to resolve the issue of input tax adjustments for refineries.