Federal Cabinet Approves Major Restructuring of Commerce Ministry Entities

The Federal Cabinet has approved a comprehensive overhaul of entities under the Ministry of Commerce as part of the second phase of the federal rightsizing program. This restructuring aims to improve efficiency, reduce redundancy, and align the ministry's functions with national goals.

The commerce ministry plans to cut its workforce by 30 percent and adjust the staff-to-officer ratio from the current 5.5 to 1 to a leaner 2.5 to 1. Vacant positions will be eliminated to lower expenditures, while several entities will be merged, restructured, or wound up to enhance their effectiveness.

According to the plan, the Trade Development Authority of Pakistan will focus on trade negotiations and market access, discontinuing public funding for sponsorships. The National Tariff Commission will shift to a digitalized framework with a 30 percent workforce reduction.

Pakistan Expo Centers will work on a self-sufficiency roadmap, considering public-private partnerships to improve management. The Export Development Fund will be retained only after a review confirms its role in export growth.

The Trading Corporation of Pakistan will undergo a strategic review to ensure efficient procurement and distribution of essential goods like wheat and fertilizer. The Intellectual Property Organization will streamline its operations with a 40 percent workforce reduction and complete digitalization.

The Textile Commissioners Organization will be shut down as per ministry recommendations. Garment City Companies will either be privatized or transferred to provinces through public-private partnerships.

The Trade Dispute Resolution Organization has been given an additional year to prove its effectiveness before its future is determined.

Privatization plans are also in progress for entities such as State Life Insurance Corporation, Pakistan Reinsurance Company Limited, and National Insurance Company Limited. These measures are expected to generate revenue and reduce government operational burdens.

The Ministry of Commerce is required to submit detailed implementation plans by January 20, 2025, with third-party reviews and audits ensuring accountability and transparency