The Ministry of Information Technology and Telecommunication (MoIT&T) has embarked on a transformative rightsizing initiative aimed at streamlining its operations, enhancing efficiency, and cutting costs. This move follows the recommendations of the rightsizing committee and marks a significant shift in the operational landscape of Pakistan’s IT sector. With measures such as restructuring, third-party reviews, and legislative reforms, MoIT&T aims to position the country’s IT and telecom sectors for a sustainable future.
Key Highlights of the Rightsizing Initiative
Abolishment of Posts and Cost Savings
The rightsizing process has led to the abolishment of 17 posts within the MoIT&T. Additionally, seven positions have been declared as “dying cadres,” meaning they will not be replaced upon the retirement of their incumbents in 2026. This decision alone is expected to save approximately Rs. 25 million annually. The officer-to-staff ratio has been adjusted from 1.25 to 1.20, ensuring a leaner and more efficient structure.
Restructuring of the National Telecommunication Corporation (NTC)
A significant part of the rightsizing exercise involves reducing the structure of the National Telecommunication Corporation (NTC) by 50%. This ambitious restructuring plan has been referred to the Public-Private Partnership Authority (P3A) for further decisions. To finalize the plan, a consultant has been engaged to ensure its effective implementation.
Third-Party Review for Ignite
Ignite, the National Technology Fund, will remain operational but is set to undergo a comprehensive third-party review. This step aims to evaluate its effectiveness and identify areas for improvement, ensuring that the fund aligns with the ministry’s long-term goals.
Performance Review of the Pakistan Software Export Board (PSEB)
The Pakistan Software Export Board (PSEB) is under scrutiny with a performance review underway. A detailed report is expected to be presented to the Prime Minister within three months. Additionally, the overlap between PSEB’s functions and those of the Trade Development Authority of Pakistan (TDAP) will be evaluated to avoid redundancies and enhance collaboration.
Legislative Advancements by the Pakistan Digital Authority (PDA)
The Pakistan Digital Authority (PDA) is actively working on the Digital Nation Pakistan Act 2024. A draft bill has been finalized in consultation with stakeholders and introduced in the National Assembly. The ministry is accelerating the legislative process to ensure the early passage of this act, which is pivotal for the country’s digital transformation.
Changes in Virtual University and NITB
Virtual University has been transferred to the Ministry of Federal Education and Professional Training, marking a shift in its administrative jurisdiction. On the other hand, the National Information Technology Board (NITB) is set to be wound up, with its functions redistributed to other relevant entities.
Decentralized Procurement of IT Equipment
To streamline operations, IT equipment and software procurement will now be handled by respective procuring agencies. This decentralized approach aims to reduce delays and ensure that procurement aligns with the specific needs of each agency.
Anticipated Outcomes of the Rightsizing Initiative
Cost Efficiency
With the abolishment of redundant positions and the introduction of a leaner structure, MoIT&T is poised to save millions annually. These savings can be redirected towards more impactful initiatives in the IT and telecom sectors.
Improved Governance
The restructuring and reviews will help eliminate redundancies and enhance the operational efficiency of various entities under the ministry. This will enable better governance and a sharper focus on strategic objectives.
Accelerated Digital Transformation
The legislative advancements spearheaded by the PDA and the restructuring of key entities like NTC and PSEB are expected to accelerate Pakistan’s digital transformation journey.
Enhanced Accountability
The third-party reviews and performance assessments will ensure that entities like Ignite and PSEB remain accountable and aligned with the country’s IT development goals.
Challenges and Concerns
While the rightsizing initiative has its merits, challenges such as resistance to change, effective implementation of restructuring plans, and maintaining operational continuity during the transition period may arise. The ministry’s ability to address these challenges will determine the long-term success of this initiative.
The MoIT&T’s rightsizing initiative reflects a forward-thinking approach to modernizing Pakistan’s IT and telecom sectors. By focusing on cost efficiency, streamlined operations, and legislative reforms, the ministry aims to lay the groundwork for a more robust and sustainable digital ecosystem. As the restructuring process unfolds, it will be critical to ensure transparency, stakeholder engagement, and a clear vision for the future of the country’s IT landscape.
