Pakistan could reduce its annual government spending by as much as Rs. 4 trillion to Rs. 5 trillion if loss-making and unnecessary federal ministries are abolished in line with the 18th Constitutional Amendment, members of the Senate Functional Committee on Devolution said during a meeting on Friday.

The committee stressed that implementing the constitutional provisions more effectively could significantly improve public finances while reducing administrative duplication between the federal and provincial governments.

Lawmakers expressed concern that several ministries and government departments which were expected to be transferred to the provinces under the 18th Amendment are still operating at the federal level. According to committee members, the delay has resulted in overlapping responsibilities, higher operational costs, and unnecessary pressure on the national budget.

The 18th Amendment, introduced to strengthen provincial autonomy, shifted several administrative and legislative powers from the federal government to the provinces. However, senators argued that its implementation remains incomplete, preventing the country from realizing the intended financial and governance benefits.

During the committee meeting, members highlighted that maintaining ministries whose functions can be managed by provincial governments leads to avoidable expenditures. They emphasized that restructuring the federal administrative framework could improve efficiency while allowing public funds to be redirected toward essential sectors such as education, healthcare, infrastructure, and economic development.

The committee also called for greater coordination between federal and provincial authorities to ensure that constitutional responsibilities are implemented without further delay. Senators noted that a clear roadmap is needed to complete the devolution process and eliminate institutional overlap.

Fiscal reforms have become a key topic in Pakistan as policymakers seek ways to reduce budget deficits, improve public sector efficiency, and strengthen the country’s financial position. Reducing unnecessary government expenditure has frequently been proposed as part of broader economic reform efforts aimed at achieving long-term fiscal sustainability.

Governance experts have often argued that streamlining government institutions can help improve decision-making, minimize bureaucratic delays, and reduce recurring administrative costs. Supporters of further devolution believe that empowering provincial governments can also lead to more efficient delivery of public services tailored to local needs.

The committee maintained that full implementation of the 18th Amendment would not only uphold constitutional commitments but could also generate substantial savings for the national exchequer. If the proposed restructuring is carried out, senators believe Pakistan could potentially save between Rs. 4 trillion and Rs. 5 trillion each year, easing pressure on public finances while improving the overall efficiency of government operations.

The discussion reflects the growing focus on fiscal discipline and administrative reforms as Pakistan continues to explore measures to strengthen governance, optimize public spending, and support sustainable economic growth.