Pakistan government reform drive

In late July 2026, Prime Minister Shehbaz Sharif ordered a rapid “right‑sizing” of the federal civil service, directing a third‑party audit of abolished posts and closing several state entities such as the Utility Stores Corporation and the Public Works Department. The moves were presented as a way to cut unnecessary expenditure, lower the civil‑government‑spending‑to‑GDP ratio, and continue the privatization of assets like Pakistan International Airlines.

A week later, Sharif broadened the reform agenda. He chaired a high‑level meeting on reforms to the Oil and Gas Regulatory Authority, calling for a strict monitoring system for fuel transport and the use of digital tools across the petroleum supply chain. At the same time, he instructed officials to draft a roadmap for a Private Equity Fund aimed at channeling foreign capital into sectors such as minerals, agriculture, energy and IT, with the goal of creating jobs and diversifying financing for small‑ and medium‑sized enterprises.