IT Ministry Launches Rightsizing Initiative: Key Reforms in Pakistan’s IT and Telecom Sector

The Ministry of Information Technology and Telecommunication (MoIT&T) has recently embarked on an extensive rightsizing exercise, responding to recommendations put forward by the Rightsizing Committee. This strategic reform initiative is part of Pakistan’s broader goal to streamline its public sector, improve efficiency, and reduce unnecessary expenditure in the country’s IT and telecom sectors.

In line with the rightsizing recommendations, several key actions have been undertaken, including staff reductions and structural changes within various organizations under MoIT&T’s purview. Here’s a closer look at the significant reforms and their impact on the IT landscape in Pakistan.

Understanding the Rightsizing Initiative

Rightsizing, as defined by the government, refers to the process of adjusting the size and structure of an organization in a way that maximizes its efficiency while minimizing operational costs. This can involve reducing workforce numbers, restructuring departments, and eliminating redundant roles or positions. The MoIT&T’s current rightsizing initiative aims to optimize the staffing and operational structure of key entities within the ministry.

Key Developments in the Rightsizing Process

1. Reduction in Ministry Staff

A central aspect of the rightsizing process involves the reduction of staff at the Ministry of Information Technology and Telecommunication. The government has abolished a total of 17 positions, with an additional 7 positions categorized as “dying cadres.” These positions will be phased out as their current holders retire in 2026. The immediate impact of this reduction will result in annual savings of approximately Rs. 25 million.

The ministry has also adjusted its officer-to-staff ratio from 1.25 to 1.20, ensuring a more efficient distribution of resources and improved workforce productivity.

2. Restructuring of National Telecommunication Corporation (NTC)

The National Telecommunication Corporation (NTC), a key body in Pakistan’s telecom sector, is set to undergo a major restructuring. The aim is to reduce its structure by 50 percent. The ministry has referred the matter to P3A (Public Private Partnership Authority) for further consultation. A consultant has been appointed to develop the final blueprint for this restructuring. This move is expected to significantly reduce overheads and increase operational efficiency within NTC.

3. Ignite (National Technology Fund)

Despite the ongoing restructuring in the IT sector, Ignite (National Technology Fund) will be retained as an entity under MoIT&T. However, its operations will be subject to a third-party review to assess the fund’s effectiveness, performance, and impact on the country’s technology development.

4. Performance Review of the Pakistan Software Export Board (PSEB)

The government has recognized the need for a performance review of the Pakistan Software Export Board (PSEB). The review will assess the functioning and effectiveness of the PSEB in promoting the export of software and IT services from Pakistan. The government will also evaluate the overlap between the functions of PSEB and the Trade Development Authority of Pakistan (TDAP). A report based on the review will be presented to the Prime Minister within the next three months.

5. Creation of Pakistan Digital Authority (PDA)

A major reform within the IT sector is the creation of the Pakistan Digital Authority (PDA), tasked with overseeing digital policies and ensuring the country’s alignment with global technological trends. The PDA will introduce a finalized draft bill known as the Digital Nation Pakistan Act 2024. Efforts are underway to fast-track the legislative process to ensure the early passage of the bill in the National Assembly.

6. Transfer of Virtual University

As part of the broader restructuring plan, Virtual University has been transferred under the jurisdiction of the Ministry of Federal Education and Professional Training. This move is aimed at enhancing the university’s operational efficiency and aligning it with the broader educational goals of Pakistan.

7. Closure of the National Information Technology Board (NITB)

One of the most significant changes in this rightsizing initiative is the abolition of the National Information Technology Board (NITB). NITB will be wound up, and its functions will be redistributed to other relevant agencies. This move marks a major shift in the way Pakistan’s IT infrastructure and services are managed, streamlining the decision-making process and improving overall efficiency.

Implementation of the Reforms

1. Ministry of IT & Telecom

• Finalized Proposals: The officer-to-staff ratio has been reduced from 1.25 to 1.20. Additionally, 17 positions have been abolished, with 7 positions marked as dying cadre. This is expected to result in annual savings of approximately Rs. 25 million.
• Implementation Status: This phase of the rightsizing process has already been successfully implemented.

2. National Telecommunication Corporation (NTC)

• Finalized Proposals: NTC will undergo a 50 percent reduction in its structure.
• Implementation Status: The proposal has been referred to P3A, and a consultant has been engaged to finalize the plan.

3. Ignite (National Technology Fund)

• Finalized Proposals: Ignite will remain operational, but its functions will be reviewed by an independent third party.
• Implementation Status: A third-party review is in progress.

4. Pakistan Software Export Board (PSEB)

• Finalized Proposals: PSEB’s performance will be reviewed, with a focus on its overlap with TDAP.
• Implementation Status: A report is expected to be presented to the Prime Minister within three months.

5. Pakistan Digital Authority (PDA)

• Finalized Proposals: A draft bill will be presented for approval after consultations with stakeholders.
• Implementation Status: The draft bill is currently in progress, with hopes for its quick passage.

6. Virtual University

• Finalized Proposals: The university has been transferred to the Ministry of Federal Education and Professional Training.
• Implementation Status: This move has been implemented.

7. National Information Technology Board (NITB)

• Finalized Proposals: NITB will be wound up, and its functions will be reassigned.
• Implementation Status: This phase is currently in progress.

Impact of the Reforms on Pakistan’s IT Sector

These reforms mark a significant shift in how Pakistan’s IT and telecom sectors operate. By streamlining the organizational structure, reducing unnecessary positions, and restructuring key bodies such as NTC and PSEB, the government aims to improve the overall efficiency of the sector.

Moreover, the creation of the Pakistan Digital Authority (PDA) and the introduction of the Digital Nation Pakistan Act 2024 will help Pakistan embrace the digital age, fostering innovation and ensuring the country remains competitive in the global digital economy.

The winding down of NITB also highlights the government’s intent to minimize redundancies in the public sector and focus on improving the functionality of more critical agencies like Ignite and the PDA.

FAQs

1. What is the purpose of the rightsizing initiative?

The rightsizing initiative is designed to streamline the structure of various government organizations to reduce inefficiencies, cut costs, and improve overall performance.

2. How will the restructuring of NTC impact Pakistan’s telecom sector?

The restructuring of NTC aims to make the organization more efficient by reducing its size, which is expected to lead to better service delivery and cost reductions in the telecom sector.

3. Will Ignite’s role change after the third-party review?

While Ignite will remain operational, a third-party review will assess its performance and effectiveness. This could lead to changes in how Ignite operates in the future.

4. Why is Virtual University being transferred to another ministry?

Virtual University’s transfer to the Ministry of Federal Education and Professional Training is aimed at improving its alignment with national educational goals and improving its operational efficiency.

5. What will happen to NITB after it is wound up?

After NITB is wound up, its functions will be redistributed to other relevant agencies to streamline operations and improve efficiency in Pakistan’s IT infrastructure.

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