The Imran Khan-led government has been contemplating the decision to dismiss more than 30,000 government employees from around 20 government-run institutions before June 2020, in a bid to normalize the financial insecurity and overcome the fiscal deficit that is crippling the economy.
Media reports reveal that the Ministry of Finance has confirmed that at least 10 state-run institutions will be privatized in the near future, however, it made no comments on the number of government employees who are expected to lose their jobs.
30,000 Govt Employees to be Laid Off
Sources to the matter revealed that the Pakistan Tehreek-e-Insaf (PTI) government has been mulling over the termination of more than 30,000 government employees aside from privatizing around 20 key institutions before announcing the financial budget for the year 2020.
The terminations of government employees will be announced after the privatization of the state-run entities
The sources revealed that this proposal has been put forward by the officials of the International Monetary Fund, who are convincing the Finance Ministry to dismiss thousands of employees and privatize key government institutions to effectively overcome the financial imbalances and fiscal deficit.
The sources, as circulating on media, said, “A body set up by the Ministry of Finance has been examining and compiling the list of government employees who will be laid off, as per the proposal made by the IMF.”
The sources added that the Finance Ministry and the Privatization Commission has been tasked with the responsibility of ensuring that the bidding process for privatizing state-run institutes and the list of terminated employees is completed by the end of 2019 or the beginning of 2020.
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They added, “The terminations of government employees will be announced after the privatization of the state-run entities.”
Overcoming Fiscal Deficit
The sources further added that the PTI-led government has already dissolved the Pakistan medical and Dental Council (PMDC) through a presidential decree, and the integrated funds have been transferred to the federal accounts.
They said, “With such measures, the government will succeed in reimbursing the federal kitty, allowing it to transfer pay back the loans to the World Bank and the IMF timely.”
Media reports reveal that the finance ministry has rejected the news of termination of employees untrue
Divulging more details of the terminations, the sources said that around 4,000 employees of the Pakistan International Airlines (PIA), 4000 of Pakistan Television (PTV), 3000 of Pakistan Radio, 4000 of Sui Northern Gas Pipeline Limited (SNGPL), 10,000 of WAPDA, 6700 of PIMS/Polyclinic, NIRM Hospital, FGH Chak Shehzad, 3000 employees of the Oil and Gas Development Company Limited (OGDCL), 3000 employees of Pakistan Steel Mills, 300 of Pakistan Electronic Media Regulatory Authority (PEMRA), and 150 employees of National Institute of Health (NIH) will be terminated before June 2020.
The sources also added that in case the government decides to private the Pakistan Medical & Dental Council (PMDC), Civil Aviation Authority (CAA), Associated Press of Pakistan (APP), and Utility Stores Corporation (USC), all the employees will be laid off.
Media reports reveal that the finance ministry has rejected the news of termination of employees “untrue”. However, the official added that the privatization of 10 government-run entities will be finalized soon.
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Responding to a question about the number of employees who are likely to lose their jobs after privatization, the unnamed finance ministry official said, “I have no clue and no one is considering any layoffs for now.”