A smaller, more efficient federal government

September 9, 2026

The federal government is reportedly spending around Rs19 trillion against total tax and non-tax revenue of approximately Rs20 trillion. This leaves very little room for development, investment or dealing with future economic crises. The warning issued by a Senate subcommittee should therefore be taken seriously. The committee has called for the abolition of 24 federal ministries and institutions dealing with subjects that were transferred to the provinces under the 18th Constitutional Amendment. This is an important debate about the size and role of government.
The country cannot afford an unnecessarily large and expensive federal structure. When a subject has constitutionally been transferred to the provinces, maintaining a parallel federal ministry or institution creates duplication. It means additional offices, employees, administrative expenses and bureaucratic procedures.
A country struggling to increase its revenue should not spend almost everything it earns simply to maintain the machinery of government.
The solution, however, is not merely to cut jobs or close offices without planning. The government needs a carefully designed reform programme. Functions that genuinely belong to the federation, such as defence, foreign affairs, finance and other national responsibilities, should remain with the federal government.
But subjects that clearly fall within provincial jurisdiction should be managed by the provinces.
A smaller federal government can be more efficient and focused. It can concentrate its resources on national priorities instead of managing areas that are already the constitutional responsibility of provincial governments.
This approach would also strengthen Pakistan’s federal system. Provincial governments are generally better placed to understand local needs and develop policies according to the circumstances of their people.
The federal government should coordinate where coordination is necessary, rather than directly controlling every sector.
The Senate committee has also raised important questions about federal control over electricity distribution, police-related service matters, broadcasting, natural resources and other areas. These issues should be examined according to the Constitution rather than bureaucratic convenience.
Reducing unnecessary ministries and institutions could help lower administrative costs, eliminate duplication and make the state more effective.